Which accounting convention describes a note to the financial statements explaining the company's method of revenue recognition?
A) Comparability and consistency
B) Materiality
C) Conservatism
D) Full disclosure

Question

Quizplus · Accepted Answer

The convention of full disclosure requires companies to provide all relevant information in their financial statements, including any notes that explain their accounting policies and methods, such as their method of revenue recognition. This ensures that users of the financial statements have a full understanding of the company's financial position and performance.

Which Accounting Convention Describes a Note to the Financial Statements