The Concept of Adequate Disclosure Requires a Company to Inform

question 46

Multiple Choice

The concept of adequate disclosure requires a company to inform financial statement users of each of the following,except:

• A)The accounting methods in use.
• B)The due dates of major liabilities.
• C)Destruction of a large portion of the company's inventory on January 20,three weeks after the balance sheet date,but prior to issuance of the financial statements.
• D)Income projections for the next five years based upon anticipated market share of a new product;the new product was introduced a few days before the balance sheet date.

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Definitions:

Respond

To reply or give an answer to a question, request, or situation.

E-Mail Order

A request or order for goods or services placed through electronic mail.

Evidence

Information or details presented in support of an assertion, claim, or case, often used in legal proceedings to prove or disprove something.

Legitimate Reason

A valid, acceptable explanation or justification for an action or decision, often used in legal and professional contexts.