The Concept of Adequate Disclosure Requires a Company to Inform

question 46

Multiple Choice

The concept of adequate disclosure requires a company to inform financial statement users of each of the following,except:

• A)The accounting methods in use.
• B)The due dates of major liabilities.
• C)Destruction of a large portion of the company's inventory on January 20,three weeks after the balance sheet date,but prior to issuance of the financial statements.
• D)Income projections for the next five years based upon anticipated market share of a new product;the new product was introduced a few days before the balance sheet date.

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Definitions:

Decade

A period of ten years.

Nociception

The sensory nervous system's response to certain harmful or potentially damaging stimuli, perceived as pain.

Kinesthesia

Kinesthesia refers to the awareness of the position and movement of parts of the body via sensory organs in the muscles and joints.

Thermoception

The sensory perception of temperature.