The full disclosure principle requires a balance between_______________.

Business

1 answer:

N76 [4]2 years ago

3 0

Answer:

Relevance and cost effectiveness

Explanation:

Full disclosure principle means that a business should report all the relevant and necessary information regarding their financial statement to the people who are accustomed to reading it as not disclosing full information might affect the readers understanding.

It prevents any lack of information from the business's financial information and helps to ensure that creditors, stakeholders and investors are aware of all the relevant information while making key decisions that affect the company.

Not disclosing all the information could manipulate the companies financial statement and it may look stronger that it really is.

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