The accounting convention that is most responsible for the increase in the number of notes to financial statements is
A)materiality.
B)full disclosure.
C)consistency.
D)conservatism.

Question

Quizplus · Accepted Answer

Full disclosure convention requires companies to include all relevant information in the financial statements, which results in an increase in the number of notes. This is done to provide users of financial statements with a more comprehensive understanding of the company's financial position and performance. Materiality convention is concerned with material items only, consistency convention requires applying the same accounting treatment to similar transactions over time, and conservatism convention emphasizes caution and prudence in accounting estimations and decisions, none of which specifically lead to an increase in the number of notes.

The Accounting Convention That Is Most Responsible for the Increase