The Full Disclosure Principle

Multiple Choice

The full disclosure principle:

A) Requires that when a change in inventory cost flow assumption is made,the notes to the statements report the type of change.
B) Requires that when a change in inventory cost flow assumption is made,the notes to the statements report the justification for the change.
C) Requires that any change in net income due to changes in the inventory cost assumption be disclosed.
D) Does not require a company to use one cost flow assumption exclusively.
E) All of these answers are correct.