The Full Disclosure Principle

Multiple Choice

The full disclosure principle:

A) Is also called the consistency principle.
B) Prescribes that companies use the same accounting method for inventory valuation period after period.
C) Is not subject to the materiality principle.
D) Is only applied to retailers.
E) Prescribes that the notes to the financial statements report when a change in inventory valuation method is made, its justification and its effect on net income.