Market value of investments is shown as a footnote according to __________.

Convention of disclosure

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Convention of consistency

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Convention of conservatism

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All of the above

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Solution

The correct option is A Convention of disclosure
According to convention of full disclosure, the financial statements should disclose all reliable and relevant information which is necessary for the users. Various items of facts which do not find place in accounting statements are shown in balance sheet by way of Footnote and it includes a note for contingent liability, Change in method of depreciation, Market value of investment etc.

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