Which assumption or principle requires that all information significant enough to affect a decision of reasonably informed users should be reported in the financial statements?
A) Expense recognition.
B) Going concern.
C) Historical cost.
D) Full disclosure.

Question

Quizplus · Accepted Answer

Full disclosure is the principle that requires that all information significant enough to affect a decision of reasonably informed users should be reported in the financial statements. This means that companies must disclose all material information about their financial position, performance, and cash flows, including any potential risks and uncertainties, in order to provide users with a complete and accurate picture of their financial health.

Which Assumption or Principle Requires That All Information Significant Enough