Question

The convention of disclosure implies that all material information should _____________.

• A. Be disclosed with the financial statements
• B. Be disclosed as per choice
• C. Not be disclosed
• D. None of these

Answer 1

The correct option is A Be disclosed with the financial statements

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.