The Full Disclosure Principle Says That If a Change Is

question 118

Multiple Choice

The full disclosure principle says that if a change is made to the inventory valuation method, the company should:

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

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Definitions:

Equilibrium

A state in a market where supply equals demand, meaning there is no excess of goods or shortage, and prices are stable.

Market

A system or arena where buyers and sellers interact to trade goods, services, or resources, often determined by supply and demand dynamics.

S And D

Stands for Supply and Demand, fundamental concepts in economics representing the relationship between the quantity of a commodity available and the market's desire for it, determining its price.

CD-Rom Drives

Devices used to read data stored on CD-ROMs, once prominent for software distribution and media storage, but now largely obsolete due to technological advancements.