The accounting principle that requires including information necessary for users to make valid decisions is known as full disclosure.

• A. Consistency
• B. Full disclosure
• C. Going concern
• D. Materiality

Answer: (B)

Providing information necessary for users to make informed decisions is the full disclosure principle. It ensures financial statements include not just numbers but the notes, policies, contingencies, risks, and other explanations that help readers understand the true financial position and performance. Without this transparency, decisions could be biased or misinformed even if the figures are accurate. The other concepts serve different roles: consistency is about using the same methods over time, going concern is the assumption that the entity will continue operating, and materiality focuses on whether omitted information would influence decisions. So the requirement to include information necessary for valid decisions aligns with full disclosure.