The accounting principle that relates to more, rather than less, extensive footnotes in reports is known as ________.

Question

Quizplus · Accepted Answer

The accounting principle that relates to more, rather than less, extensive footnotes in reports is known as transparency. Transparency requires the financial information to be presented in a clear and understandable manner, allowing stakeholders to make informed decisions. Extensive footnotes provide additional details about the financial statements, increasing transparency by providing explanatory information about significant accounting policies, contingent liabilities, and other relevant information.

The Accounting Principle That Relates to More, Rather Than Less