Application of the full disclosure principle
A)is theoretically desirable but not practical because the costs of complete disclosure
Exceed the benefits.
B)is violated when important financial information is buried in the notes to the financial
Statements.
C)is demonstrated by the inclusion of information such as information about contingencies.
D)requires that the financial statements be consistent and comparable.

Question

Quizplus · Accepted Answer

The full disclosure principle requires that all relevant financial information, including contingencies, be disclosed in the financial statements or notes to ensure users have a complete understanding of the company's financial position.

Application of the Full Disclosure Principle