What purpose do financial statement notes serve?

Financial statement notes are a crucial component of a company's financial reports, serving to provide additional explanations and disclosures that enhance the understanding of the financial statements. These notes typically include detailed information about accounting policies, methodologies used in measurements, and any uncertainties or assumptions that could impact the financial results presented.

By thoroughly illuminating these aspects, the notes help users of the financial statements—such as investors, creditors, and analysts—grasp the context behind the numbers. They clarify complex transactions, describe the nature of risks, and explain how estimates were derived, all of which can significantly influence decision-making.

The other options focus on different aspects that do not encompass the full purpose of financial statement notes. While summarization and listing of accounting principles are useful, they do not capture the comprehensive role that notes play in providing insights and transparency into the financial activities and conditions of the company.