The Full Disclosure Principle

question 135

Multiple Choice

The full disclosure principle:

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

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Definitions:

Sentence Variety

The practice of varying the length, structures, and types of sentences in a piece of writing to improve readability and interest.

Hitsville USA

The nickname for Motown Records' first headquarters in Detroit, which became the birthplace of numerous hit songs in the 1960s.

Motown Records

An American record label known for its significant role in the racial integration of popular music and its success with many major artists during the 1960s and beyond.

Sentence Variety

The use of different sentence structures and styles to enhance the readability and interest of writing.