Application of the Full Disclosure Principle

question 25

Multiple Choice

Application of the full disclosure principle

• A)is theoretically desirable but not practical because the costs of complete disclosure exceed the benefits.
• B)is violated when important financial information is buried in the notes to the financial statements.
• C)is demonstrated by the inclusion of information such as information about contingencies.
• D)requires that the financial statements be consistent and comparable.

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Definitions:

Public Issues

Matters of concern that affect the interests or well-being of the general public or society at large.

Industry Self-Regulation

The process where an industry regulates itself without intervention from governmental bodies, typically through the establishment of codes of conduct, standards, and practices.

Legal Standards

The established benchmarks or criteria that guide the interpretation and enforcement of laws.

Fin-Syn Rules

Regulations established to prevent networks from owning the syndication rights to the programming they air, ensuring a diversity of TV show ownership.