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Question
This principle is an exception to the principle of full disclosure.
Options
Materiality
Consistency
Conservatism
Timeliness
Solution
Materiality
Explanation:
The materiality principle is an exception to the principle of full disclosure. According to the materiality principle, only information that is significant enough to influence the decision-making of financial statement users needs to be fully disclosed. Insignificant or immaterial items can be omitted or aggregated as long as they do not affect the overall understanding of the financial statements.
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