Inadequate disclosure occurs when: a. A company attempts to overstate assets to make their financial position look better. b. Management makes statements that are wrong in its annual report or any other media. c. Assets are not written down to their appropriate values because insufficient depreciation is recorded. d. A company understates its liabilities and overstates its revenues and net income.

Question

19-11-2019
Business

contestada

Inadequate disclosure occurs when: a. A company attempts to overstate assets to make their financial position look better. b. Management makes statements that are wrong in its annual report or any other media. c. Assets are not written down to their appropriate values because insufficient depreciation is recorded. d. A company understates its liabilities and overstates its revenues and net income.

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Nyctalus Nyctalus · Answer 1 · 2019-11-19T07:53:09+01:00

Answer: Option B

Explanation: In simple words, inadequate disclosures refers to the situation when a company fails to make accurate or enough discloses in a statement as required by various laws and regulations.

The disclosure can be done through any medium such as media or in the yearly statement but if it does not contain proper information that it will be considered as an offence and suitable actions could be taken.