Question

    The principle that requires a business to disclose all

    material information in the financial statements is called:
    A Materiality Correct Answer Incorrect Answer
    B Consistency Correct Answer Incorrect Answer
    C Disclosure Correct Answer Incorrect Answer
    D Conservatism Correct Answer Incorrect Answer

    Solution

    The disclosure principle requires a business to disclose all material information in the financial statements so that stakeholders can make informed decisions.

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