BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cost principle
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disclosure principle
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reliability principle
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GAAP
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Detailed explanation-1: -Full disclosure principle refers to the concept that suggests that a business should report all the necessary information in their financial statements, so that the users who are able to read the financial information are in a better position to make important decisions regarding the company.
Detailed explanation-2: -The Full Disclosure Principle states that all relevant and necessary information for the understanding of a company’s financial statements must be included in public company filings.
Detailed explanation-3: -Notes to the financial statements disclose the detailed assumptions made by accountants when preparing a company’s: income statement, balance sheet, statement of changes of financial position or statement of retained earnings.
Detailed explanation-4: -The full disclosure principle is a concept that requires a business to report all necessary information about their financial statements and other relevant information to any persons who are accustomed to reading this information.