The principle of full disclosure pertains to:
A) The entity fully discloses all client data.
B) The entity fully discloses all proprietary information.
C) The entity fully discloses all necessary information to prevent a reasonably astute user of financial statements from being misled.
D)The entity fully discloses all necessary information to prevent all users of financial statements from being misled.
E) All of the above.

Question

Quizplus · Accepted Answer

The principle of full disclosure refers to the idea that an entity should fully disclose all necessary information to prevent a reasonably astute user of financial statements from being misled. This does not necessarily mean that all client data or proprietary information must be disclosed. The main goal is to ensure that financial statements provide a complete and accurate representation of a company's financial situation.

The Principle of Full Disclosure Pertains To