The Full Disclosure Principle Says That If a Change Is

question 80

Multiple Choice

The full disclosure principle says that if a change is made:

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

---

Definitions:

Technological Advances

Innovations and improvements in technology that increase productivity and efficiency in the production process.

Herfindahl-Hirschman Index

A measure used to assess the level of market concentration and competition among firms in an industry.

National CineMedia

A cinema advertising company that operates in the United States, providing in-theatre advertising and promotional products.

Herfindahl-Hirschman Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.