Which of the following regarding GAAP is true?

1. U.S. GAAP is the body of accounting knowledge followed by all countries in the world.
2. Changes in GAAP can affect the interests of managers and stockholders.
3. GAAP is the abbreviation for generally accepted auditing procedures.
4. ChangestoGAAPmustbeapprovedbytheSenateFinanceCommittee.

Which of the following isnota typical note included in an annual report?

1. A note describing the auditor's opinion of the management's past and future financial planning for the business.
2. A note providing more detail about a specific item shown in the financial statements.
3. A note describing the accounting rules applied in the financial statements.
4. A note describing financial disclosures about items not appearing in the financial statements.