The disclosure principle states that a company should disclose all major accounting methods and procedures in the:

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The disclosure principle states that a company should disclose all major accounting methods and procedures in the footnotes to the financial statements. This allows users of the financial statements to understand how the company arrived at its financial position and performance. The balance sheet and income statement provide summary information and do not typically include detailed explanations of accounting methods and procedures. The adjusted trial balance is an internal document used by the company to ensure the accuracy of the accounting records and is not typically disclosed to external users.

The Disclosure Principle States That a Company Should Disclose All