The Full Disclosure Principle

question 91

Multiple Choice

The full disclosure principle:

• A)Requires that when a change in inventory valuation method is made,the notes to the financial statements report the type of change,why it was made,and its effect on net income.
• B)Requires that companies use the same accounting method for inventory valuation period after period.
• C)Is not subject to the materiality principle.
• D)Is only applied to retailers.
• E)Is also called the consistency principle.

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Definitions:

Extremely Vocal

Describes individuals or groups that express their opinions, needs, or demands loudly and passionately.

Streetwise

Refers to having the savvy and practical knowledge needed to deal with the dangers and potential difficulties found in urban environments.

Alertness

The state of being watchful and prompt to meet danger or emergency, or to discover and avoid hidden risks.

Home Visits

Home visits refer to the practice of professionals visiting the homes of clients or patients to provide services, assessments, or support directly in their living environment.