The disclosure principle requires that management prepare financial reports that disclose all of the following types of information EXCEPT:

Question

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The disclosure principle requires management to provide information that is relevant to decision making, information that facilitates comparison with other companies' financial reports, and information about the accounting policies and methods used by the company. However, it does not require the disclosure of forecasts of expected future earnings to help investors decide whether to invest in the company. Such forecasts are not considered reliable financial information, and companies are not required to provide them in their financial reports.

The Disclosure Principle Requires That Management Prepare Financial Reports That