The Full Disclosure Principle

question 36

Multiple Choice

The full disclosure principle

• A) Requires that when a change in inventory cost flow assumption is made, the notes to the statements report the type of change
• B) Requires that when a change in inventory cost flow assumption is made, the notes to the statements report the justification for the change
• C) Requires that any change in net income due to changes in the inventory cost assumption be disclosed
• D) Does not require a company to use one cost flow assumption exclusively
• E) All of the above

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Definitions:

Partial Report

A method used in memory research where subjects are asked to recall only a portion of the information presented to them, demonstrating the capacity of sensory memory.

Capacity

The maximum amount something can contain or the ability to do something.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses and is capable of holding information for a very short period of time.

Fleeting Images

Fleeting images are brief, rapidly passing visual impressions that are not retained long in the memory.