Ms. Mira is auditing a company's financial statements and notice that no footnotes have been provided for significant liabilities. Which accounting principle is most likely being violated?

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KollegeApply · Accepted Answer

Principle of Full Disclosure Explanation: The Principle of Full Disclosure encourages a company to disclose all material and relevant financial information in its financial statements or related footnotes, allowing users (such as investors and auditors) to make educated judgments. Failure to disclose large obligations in the footnotes obscures critical financial concerns, which is a clear violation of this principle.

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