The Full Disclosure Principle, as Adopted by the Accounting Profession

question 22

Multiple Choice

The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?

• A)All information related to an entity's business and operating objectives is required to be disclosed in the financial statements.
• B)Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements.
• C)Enough information should be disclosed in the financial statements so a person wishing to invest in the shares of the company can make a profitable decision.
• D)Disclosure of any financial facts significant enough to influence the judgment of an informed reader.

---

Definitions:

Team

A group of individuals working together towards a common goal or objective.

Solve

The act of finding a solution to a problem or challenge.

Demote

The action of reducing someone's rank or position, usually as a disciplinary measure or organizational restructuring.

Lower-level Position

A job role that typically requires less experience and responsibility within the organizational hierarchy.