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According to the convention of disclosure, what should be communicated in financial statements?
  • a)
    All material and relevant facts
  • b)
    Only statutory requirements
  • c)
    Non-material facts
  • d)
    Future events and predictions
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
According to the convention of disclosure, what should be communicated...
The convention of disclosure requires that all material and relevant facts concerning the financial position and results of operations of a business should be communicated in the financial statements. This convention ensures that users of the financial statements have access to all significant information that may impact their evaluation and decision-making. Material facts are those that could influence the economic decisions of users, and it is important to provide transparency and full disclosure in financial reporting. 
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According to the convention of disclosure, what should be communicated in financial statements?a)All material and relevant factsb)Only statutory requirementsc)Non-material factsd)Future events and predictionsCorrect answer is option 'A'. Can you explain this answer?
Question Description
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