The full disclosure principle requires inclusion of information about contingent liabilities that are reasonably possible in the notes to the financial statements.

Question

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The full disclosure principle requires companies to disclose information about contingent liabilities that are reasonably possible in the notes to the financial statements. This helps investors and other financial statement users to have a better understanding of the company's financial position and potential risks that may impact future operations.

The Full Disclosure Principle Requires Inclusion of Information About Contingent