Which accounting convention requires 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 Full disclosure convention requires that all material and relevant information be disclosed in the financial statements. This includes providing a note explaining the company's method of revenue recognition, which is a significant accounting policy that can affect the reported results.

Which Accounting Convention Requires a Note to the Financial Statements