The general message of the full disclosure principle is that
A)information is costly to fake.
B)producers should offer lifetime warranties for low quality products.
C)the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one.
D)information is symmetric.

Question

Quizplus · Accepted Answer

The general message of the full disclosure principle is that all relevant information should be disclosed to users of financial statements, even if it reflects negatively on the company. This includes information about potential risks and uncertainties that may affect the company's finances. One of the underlying principles of full disclosure is that the lack of evidence that something belongs to a certain category (such as a high-quality product) suggests that it belongs to a less favored one (such as a lower-quality product). This helps users of financial statements to make informed decisions based on all available information. Therefore, choice C is the best answer.

The General Message of the Full Disclosure Principle Is That