The Full Disclosure Principle

question 213

Multiple Choice

The full disclosure principle:

• A) Requires that companies use the same accounting method for inventory valuation period after period.
• B) Is not subject to the consideration of materiality.
• C) Prescribes that the notes to the financial statements report the change from one inventory valuation method to another.
• D) Is also called the consistency principle.
• E) Is only applied to retailers and manufacturers.

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Definitions:

Long-term

Pertaining to a time frame that extends over a significant period, usually referring to plans, investments, or strategies that unfold or mature over several years.

Corporate Strategy

Organizational-level decisions that focus on long-term survival.

Healthy Food Choices

Selecting foods that offer nutritional benefits, like fruits, vegetables, whole grains, and lean proteins, for a balanced diet.

Regional Food Interests

Preferences and trends in food consumption that are distinct to a particular geographical area or culture.