The Full Disclosure Principle

question 45

Multiple Choice

The full disclosure principle:

• A)Prescribes that the notes to the financial statements report the change from one inventory valuation method to another.
• B)Requires that companies use the same accounting method for inventory valuation period after period.
• C)Is not subject to the consideration of materiality.
• D)Is only applied to retailers and manufacturers.
• E)Is also called the consistency principle.

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Definitions:

Danger to Society

A term often used to describe individuals or behaviors perceived as posing a significant risk of harm or negative impact to the community or public.

Hospitalized Offenders

Individuals who commit crimes and are placed in a medical facility for treatment due to mental health or physical issues.

Foucha v. Louisiana

A landmark United States Supreme Court case that addressed the criteria for the involuntary commitment of individuals who have been found not guilty by reason of insanity.

Release

The act of setting something free or letting it go; in various contexts, it can refer to the liberation of substances, emotions, information, etc.