The Full Disclosure Principle

question 91

Multiple Choice

The full disclosure principle:

• A)Requires that when a change in inventory valuation method is made,the notes to the financial statements report the type of change,why it was made,and its effect on net income.
• B)Requires that companies use the same accounting method for inventory valuation period after period.
• C)Is not subject to the materiality principle.
• D)Is only applied to retailers.
• E)Is also called the consistency principle.

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Definitions:

Local Anesthetics

Drugs that cause temporary loss of sensation in a specific area of the body without affecting consciousness.

Intramuscular Injection

The injection of a substance directly into a muscle, a common route for vaccines and certain medications.

Piggyback Infusion

A method of administering a secondary intravenous medication or fluid simultaneously with the primary infusion line, using a smaller, secondary bag.

Volume-Control Device

A device used in intravenous therapy to precisely control the volume of fluid delivered to the patient.