Advertisements
Advertisements
Question
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
Options
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
Advertisements
Solution
Principle of full disclosure
Explanation:
The principle of full disclosure requires that all material information that could influence the decision-making of financial statement users be fully and clearly disclosed. This ensures transparency and allows stakeholders to make informed decisions based on complete and accurate information.
APPEARS IN
RELATED QUESTIONS
Justify the following:
Every transaction is recorded in at least three accounts.
Explain the need for GAAP for accounting.
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
______ is the language of business.
According to Business Entity Concept:
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
"Every transaction affects at least three accounts." Comment.
Explain any two basic concepts of accounting.
Explain Accounting Period Concept.
Explain the revenue principle.
