237
Question
Contingent liability appears as a foot note in the balance sheet. This is in accordance with the accounting principle _____________.
Contingent liability appears as a foot note in the balance sheet. This is in accordance with the accounting principle _____________.
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Solution
The correct option is A Disclosure
The principle of full disclosure requires that all material
and relevant facts concerning financial performance of an enterprise must be
fully and completely disclosed in the financial statements and their
accompanying footnotes.
This is to enable the users to make correct assessment
about the profitability and financial soundness of the enterprise and help them
to take informed decisions.
The principle of full disclosure requires that all material and relevant facts concerning financial performance of an enterprise must be fully and completely disclosed in the financial statements and their accompanying footnotes.
This is to enable the users to make correct assessment about the profitability and financial soundness of the enterprise and help them to take informed decisions.
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