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In Complying with the Full Disclosure Principle, an Accountant Must

Question 33

Multiple Choice

In complying with the full disclosure principle, an accountant must determine the amount of disclosure necessary. How much disclosure is enough?


A) Information sufficient for a person without any knowledge of accounting to understand the statements.
B) All information that might be of interest to an owner of a business enterprise.
C) Information that is of sufficient importance to influence the judgment and decisions of an informed user.
D) Information sufficient to permit most persons coming in contact with the statements to reach an accurate decision about the financial condition of the enterprise.

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