ExplanationChoice A is correct. The summary of significant accounting policies should disclose policies. The onlypolicy in this question is the basis of profit recognition on longtermconstruction contracts. The otherdisclosures are accounting details and would be disclosed in other footnotes, but not in the summary ofsignificant accounting policies.Choice B is incorrect. The future minimum lease payments should be disclosed, but not in the summaryof significant accounting policies.Choice C is incorrect. Depreciation expense should certainly be disclosed, but not in the summary ofsignificant accounting policies.Choice D is incorrect. The composition of sales by segment should be disclosed, but not in thesummary of significant accounting policies.