Application of the full disclosure principle
A. is theoretically desirable but not practical because the costs of complete disclosure exceed the benefits.
B. is violated when important financial information is buried in the notes to the financial statements.
C. is demonstrated by the inclusion of information such as information about contingencies.
D. requires that the financial statements be consistent and comparable.
Answer:C
Application of the full disclosure principle
A. is theoretically desirable but not practical because the costs of complete disclosure exceed the benefits. B. is violated when important financial information is buried in the notes to the financial statements. C. is demonstrated by the inclusion of information such as information about contingencies. D. requires that the financial statements be consistent and comparable.