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

question 41

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

---

Definitions:

Environment

The sum of all external conditions and influences affecting the life and development of organisms, including natural and built surroundings.

Soil Erosion

The wearing away of the top layer of soil by wind, water, or human activity, leading to reduced soil fertility and the degradation of land quality.

Composting

A process of recycling organic waste into a nutrient-rich soil amendment.

Crop Yields

The amount of agricultural produce harvested per unit of land area.