The Full Disclosure Principle

question 166

Multiple Choice

The full disclosure principle:

• A)Is also called the consistency principle.
• B)Prescribes 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)Prescribes that the notes to the financial statements report when a change in inventory valuation method is made, its justification and its effect on net income.

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Definitions:

Body Language

Non-verbal communication through physical behaviors, such as gestures, posture, and facial expressions, that express a person's feelings or intentions.

Environmental Cues

External signals or factors in an environment that can influence behavior or responses.

Creative Process

A series of steps or stages involved in generating innovative ideas and solutions, often characterized by imagination and divergent thinking.

Fun

Enjoyment, amusement, or lighthearted pleasure.