Making notes in the financial statements to explain the justification of valuation changes and other financial decisions would be an example of:
A)conservatism.
B)consistency.
C)materiality.
D)full disclosure.

Question

Quizplus · Accepted Answer

Full disclosure requires that all relevant information be disclosed in the financial statements, including explanations for significant valuation changes and financial decisions. This helps ensure transparency and provides stakeholders with a better understanding of the company's financial position.

Making Notes in the Financial Statements to Explain the Justification