The Full Disclosure Principle

question 69

Multiple Choice

The full disclosure principle:

• A) Requires that when a change in inventory cost flow assumption is made,the notes to the statements report the type of change.
• B) Requires that when a change in inventory cost flow assumption is made,the notes to the statements report the justification for the change.
• C) Requires that any change in net income due to changes in the inventory cost assumption be disclosed.
• D) Does not require a company to use one cost flow assumption exclusively.
• E) All of these answers are correct.

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