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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Definitions:

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a number of different things, significantly impacting daily functioning.

Delusions

Fixed false beliefs that are resistant to reason or confrontation with actual facts, often observed in psychiatric conditions.

Trembling

Involuntary, rhythmic muscle contractions leading to shaking movements in one or more parts of the body, often due to emotional states or medical conditions.

Phobic Disorder

A type of anxiety disorder characterized by an excessive and irrational fear of an object, situation, or activity, leading to avoidance behavior.