Question

Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information?

a. Relevance
b. Full disclosure
c. Evaluation
d. Materiality
e. Matching

Answer 1

Answer:

The correct answer is Option B.

Explanation:

The full disclosure principle is a concept that requires all necessary details relating to the notes to the financial statements are provided and explained in such a way that would be understandable to the users of the financial statements.

The disclosures are expected to be in compliance with the accounting standards, regulatory pronouncements, among others.