The accounting principle that requires financial statements (including notes) to report all relevant information about the operations and financial condition of a company is called:
A) Relevance.
B) Full disclosure.
C) Evaluation.
D) Materiality.
E) Matching.

Question

Quizplus · Accepted Answer

The principle of full disclosure requires companies to report all relevant information about their operations and financial condition in their financial statements and accompanying notes. This includes information that may not be required by other accounting principles but is important for users of the financial statements to fully understand the company's performance and future prospects.

The Accounting Principle That Requires Financial Statements (Including Notes) to Report