The full disclosure principle requires businesses to show balance information in the depreciable asset accounts, accumulated depreciation amounts and methods used to compute depreciation expense.

Question

Quizplus · Accepted Answer

The full disclosure principle requires businesses to disclose all relevant information in their financial statements, including information about depreciable assets, accumulated depreciation, and methods used to compute depreciation expense. This helps users of the financial statements to make informed decisions about the business's financial position and performance. Therefore, Option A is correct.

The Full Disclosure Principle Requires Businesses to Show Balance Information