Theory Base of Accounting · Class 11 · CBSE · Commerce Accountancy
Which of the following describes the Full Disclosure Principle?
Practice question from Theory Base of Accounting (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-DA77C2
Which of the following describes the Full Disclosure Principle?
- A.Recording only transactions that can be measured in monetary terms
- B.Providing all significant and relevant financial information in the financial statements and footnotesCorrect answer
- C.Anticipating no profits and providing for all possible losses
- D.Treating the business as having an indefinite life span
Solution
The Full Disclosure Principle mandates that all material and relevant facts regarding financial performance and position must be fully and fairly disclosed in the financial statements or accompanying notes.
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