The Full Disclosure Principle

question 175

Multiple Choice

The full disclosure principle:

• A) Prescribes that when a change in inventory valuation method is made, the notes to the statements report the type of change, its justification 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:

Oviducts

The tubes through which eggs pass from the ovaries to the uterus in female mammals; also known as fallopian tubes.

Vagina

The elastic, muscular tube, extending from the cervix to its external opening, that receives the penis during heterosexual intercourse and serves as the birth canal.

Uterus

A major female reproductive organ in many animals, including humans, where offspring are conceived and in which they gestate before birth.

Cervix

The lower part of the uterus in the female reproductive system, connecting the uterus to the vagina.