The correct answer is: A. concept of full disclosure.
Contingent liabilities are potential liabilities that may arise from past events but are not recognized as liabilities because they are not probable or the amount cannot be reasonably estimated. They are disclosed in the notes to the financial statements to provide users with information about potential risks and obligations.
The concept of full disclosure requires that all material information about an entity be disclosed in its financial statements. This includes information about contingent liabilities, as they can have a significant impact on an entity’s financial position and results of operations.
The concept of conservatism is a principle of accounting that states that assets and revenues should be conservatively stated and liabilities and expenses should be conservatively estimated. This means that assets should not be overstated and liabilities should not be understated.
The concept of materiality is a principle of accounting that states that only information that is significant to the users of financial statements should be disclosed. This means that information about contingent liabilities that is not material need not be disclosed.
The dual aspect concept is a principle of accounting that states that every transaction has two aspects: a debit and a credit. This means that for every increase in one account, there must be a corresponding decrease in another account.
I hope this helps! Let me know if you have any other questions.