The Principle of Full Disclosure Means That the Reporting Entity

question 29

Multiple Choice

The principle of full disclosure means that the reporting entity must fully disclose:

• A)all client data.
• B)all proprietary information.
• C)all necessary information to prevent a reasonably astute user of financial statements from being misled.
• D)all necessary information to prevent all users of financial statements from being misled.

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Definitions:

Anticodon

A sequence of three nucleotides in a tRNA molecule that pairs with a complementary codon in mRNA during protein synthesis.

tRNA

Transfer RNA; a type of RNA that helps decode a messenger RNA (mRNA) sequence into a protein during protein synthesis.

Mutation

Permanent change in the DNA sequence of a chromosome.

Amino Acid

Organic compounds that combine to form proteins and are characterized by having a carboxyl and an amino group.