(a) Where does the accountant disclose information about an entity's financial position, operations, and cash flows? (b) The full disclosure principle recognizes that the nature and amount of information included in financial reports reflects a series of judgmental trade-offs. What are the objectives of these trade-offs?

Pat Schoen is the president of Better Books. She has no accounting background. Shoen cannot understand why current cost is not used as the basis for accounting measurement and reporting. Explain what basis is used and why?