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:

Value

An expression of the worth of something, typically in monetary terms but can also encompass subjective aspects like sentimental value.

Percentage Form

A way of expressing numbers as a fraction of 100.

Percentage Form

A way of expressing numbers as a fraction of 100, symbolized by the percent sign (%).

Sticker Price

The full retail price of a vehicle, as displayed on a sticker in the car's window; commonly used to refer to the initial asking price of goods.