The Full Disclosure Principle Says That If a Change Is

question 80

Multiple Choice

The full disclosure principle says that if a change is made:

• A)the company should disclose the change.
• B)the effects of the change on profit and inventory valuation should be disclosed.
• C)the company should show justification for the change in a footnote on the financial reports.
• D)All of these answers are correct.

---

Definitions:

Well-Being

A positive condition of existence marked by health, happiness, and prosperity; feeling good about one's life.

Disclosure Reciprocity

The social principle suggesting that openness in communication is often matched by similar openness in response from others.

Self-Esteem

A person's overall subjective emotional evaluation of their own worth.

Midterm Exam

An examination given near the middle of an academic term to assess students' knowledge and learning progress.