Which assumption or principle requires that all information significant enough to affect adecision of reasonably informed users should be reported in the financial statements? a. Matching. b. Going concern. c. Historical cost. d. Full disclosure.

Question

Winston

Business

2 October, 07:56

Which assumption or principle requires that all information significant enough to affect adecision of reasonably informed users should be reported in the financial statements? a. Matching. b. Going concern. c. Historical cost. d. Full disclosure.

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Daniel Mckenzie · Answer 1

Letter d is correct. Full disclosure.

Explanation:

The accounting principle of full disclosure can be defined as GAAP requirements for an organization's management to provide all key information about the company's operations to investors and creditors, so that such external users can use the financial statements and notes. relevant footers to assist in the decision-making process.

Therefore, the main objective of the full disclosure principle is that there is a principle of transparency for organizations in the disclosure of financial information capable of influencing the judgment of external users, such as past transactions and future contingent events to third parties.