Question

As she prepared financial documents to be discussed at her company's

annual shareholders' meeting, Linda added an appendix to the financial overview that details all financial transactions in the last fiscal year.
Which of the accounting principles below is she observing?
a) Matching Principle
b) Measurement Principle
c) Full Disclosure Principle
d) Time Period Principle

Answer 1

Answer: c) Full Disclosure Principle

Step-by-step explanation:

The Full Disclosure Principle is a principle in accounting that tries to reduce any information asymmetry between a company and the people who are to have access to their financial statement.

It does so by requiring that all relevant information to the financial statements such as financial overviews for the period are added to the statements so that the readers can understand the transactions that took place as well as the accounting methodology used.