The concept of adequate disclosure:
A) Does not apply to information which is immaterial.
B) Grants users of the financial statements access to a company's accounting records.
C) Does not apply to events occurring after the balance sheet date.
D) Specifies which accounting methods must be used in a company's financial statements.

Question

Quizplus · Accepted Answer

Adequate disclosure refers to providing all necessary and relevant information in financial statements so that users can make informed decisions. However, it does not apply to immaterial information, which is insignificant and does not impact the decision-making process.

The Concept of Adequate Disclosure