full disclosure principle is of which chapter in accounts?
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Answer:
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Explanation:
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Answer:
Full disclosure principle refers to the concept that suggests that a business should report all the necessary information in their financial statements, so that the users who are able to read the financial information are in a better position to make important decisions regarding the company.
Full disclosure is especially beneficial for creditors and investors. The disclosing of financial information helps in decision making. The information is readily available to investors and creditors in the financial statements or as a note in the end of the financial statements.
A company can have various stakeholders which include creditors, suppliers, customers, investors, etc who use the financial information for deciding on the course of action to be taken regarding their stance in the business.
Since, the external users of financial information lack any kind of information on how business is run, the full disclosure principle makes it easier to determine how a company is functioning.
Explanation: IDK :)