The Concept of Adequate Disclosure Means That

question 87

Multiple Choice

The concept of adequate disclosure means that:

• A)The accounting department of a business must inform management of the accounting principles used in preparing the financial statements.
• B)The company must inform users of any significant facts necessary for proper interpretation of the financial statements,including events occurring after the financial statement date.
• C)The independent auditors must disclose in the financial statements any and all errors detected in the company's accounting records.
• D)The financial statements should include a comprehensive list of each transaction that occurred during the year.

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Definitions:

Liable for Infringement

The state of being legally responsible for violating a right or law, typically referring to intellectual property rights.

Newspaper

A regularly published print or digital publication containing news, information, and advertisements relevant to a broad audience.

Photograph

An image created by capturing light on a light-sensitive surface, either digitally or on film.

Patent

The exclusive right granted to the inventor of something new and different to produce the invention for a period of 20 years in return for the disclosure of the invention to the public.