Requiring a company to include all information necessary for a thorough understanding of a company's financial affairs in its financial statements or accompanying footnotes is an application of the
A) entity concept.
B) historical cost principle.
C) matching principle.
D) going concern assumption.
E) full disclosure principle.

Question

Quizplus · Accepted Answer

The full disclosure principle mandates that a company must provide all information necessary for a thorough understanding of its financial statements and any accompanying notes. This ensures that users of the financial statements have a complete view of the company's financial situation.

Requiring a Company to Include All Information Necessary for a Thorough