Which fundamental characteristic makes explicit the assumption of the full disclosure principle?
A)relevance
B)materiality
C)verifiability
D)completeness

Question

Quizplus · Accepted Answer

The full disclosure principle assumes that all relevant financial information should be disclosed to users of financial statements. Completeness is the fundamental characteristic that ensures all information is disclosed, thereby fulfilling the full disclosure principle. Relevance and materiality are also important characteristics, but they do not directly relate to the assumption of the full disclosure principle. Verifiability is related to the reliability characteristic.

Which Fundamental Characteristic Makes Explicit the Assumption of the Full