ExplanationChoice B is correct. Disclosure of accounting policies (and all other disclosure also) is an integral partof the financial statements.Choice A is incorrect. For disclosure of accounting policies, disclosure should not be limited toprinciples and methods peculiar to the industry in which the company operates. All material accountingpolicies should be disclosed.Choice C is incorrect. For disclosure of accounting policies, the format and location of accountingpolicies are not fixed by GAAP. Accounting policy disclosures are normally Note 1, but that is a(reasonable and very general) practice and not a rule. It does make sense to disclose the why beforethe what.Choice D is incorrect. Disclosure of accounting policies should not duplicate details disclosedelsewhere in the financial statements.