Which of the Following Principles States That a Business's Financial

question 57

Multiple Choice

Which of the following principles states that a business's financial statements must report enough information for outsiders to make knowledgeable decisions about the company?

• A)accounting conservatism
• B)materiality concept
• C)disclosure principle
• D)consistency principle

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Definitions:

Phloem

The vascular tissue in plants responsible for the transport of nutrients such as sugars from the leaves to other parts of the plant.

Annual Rings

Concentric rings visible in the cross-section of a tree trunk representing a year's worth of growth; used to estimate age and historical climate conditions.

Tropical Rain Forest

A dense, warm, wet forest biome located near the equator, known for its high biodiversity and as the habitat for half of the Earth's plant and animal species.

Outward-Facing

Directed towards the exterior or outside of something.