Question

    The practice of appending notes regarding contingent

    liability in accounting statements is pursuant to:
    A Conventions of consistency Correct Answer Incorrect Answer
    B Money measurement concept Correct Answer Incorrect Answer
    C Convention of conservatism Correct Answer Incorrect Answer
    D Convention of full disclosure Correct Answer Incorrect Answer

    Solution

    The Convention of full disclosure ensures that all material information, including contingent liabilities, is disclosed in the financial statements. This helps users understand potential risks and uncertainties related to the company's financial position.

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