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Accounts AIL 2

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Accounts AIL 2
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  • Morning Paxton! Have you studied anything now?
  • Morning Ben! Yes I studied all night but I am still a bit nervous.
  • Wow! That's great. Can I ask you some questions ?
  • Yeah sure!
  • Okay great! so tell me what is Full disclosure principle?
  • The Full Disclosure Principle states that all relevant and necessary information for the understanding of a company's financial statements must be included in public company filings.
  •  Accounts Test  Q1 List 1 advantage of full disclosure principle. Q2 List 1 disadvantage of full disclosure principle
  • Ans1- It helps in saving the investors from getting misled by the companies
  • Ans2-There are chances that the competitors will use the information disclosed by the company against them 
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