Which of the following best demonstrates the full disclosure principle?
A) The multi-step income statement.
B) The auditors' report.
C) The company's tax return.
D) Disclosure notes to financial statements.

Question

Quizplus · Accepted Answer

The best choice that demonstrates the full disclosure principle is disclosure notes to financial statements. These notes provide additional information on the financial statements, including significant accounting policies, contingencies, and other relevant information necessary for users to make informed decisions. The disclosure notes ensure that all relevant information is disclosed to users of the financial statements.

Which of the Following Best Demonstrates the Full Disclosure Principle