The principle that requires companies to include notes to their financial statements is the:
A)full disclosure principle.
B)going-concern principle.
C)cost-benefit principle.
D)historical cost principle.

Question

Quizplus · Accepted Answer

According to the full disclosure principle,financial reports should present all information that is needed to properly interpret the results of the company's business activities.This doesn't mean that every single transaction needs to be explained in detail,but rather that adequate information needs to be presented to allow financial statement users to fairly interpret reports about the company's income,financial position,and cash flows.

The Principle That Requires Companies to Include Notes to Their