Inadequate disclosure occurs when:
A)a company attempts to overstate assets to make their financial position look better.
B)management makes statements that are wrong in its annual report or any other media.
C)assets are not written down to their appropriate values because insufficient depreciation is recorded.
D)a company understates its liabilities and overstates its revenues and net income.

Question

Quizplus · Accepted Answer

Inadequate disclosure occurs when management makes statements that are wrong in its annual report or any other media. This can mislead stakeholders and investors and damage the company's reputation. The other options relate to specific types of financial misstatements.

Inadequate Disclosure Occurs When