Question

Which accounting principle requires that information in financial statements shouldn’t mislead the company’s investors?

Answer 1

Principle of Materiality

Explanation:

All financial data should be laid out in a GAAP-compliant report. This principle is supposed to ensure that your accountant doesn’t skip accounts or debts, or mislead readers by omitting information.

Answer 2

The accounting principle, that requires that information in financial statements shouldn't mislead the company investors is the PRINCIPLE OF SINCERITY.
The principles requires that, the financial statement of the company should be prepared in such a way that, the information in it will not be misleading in any way. The information must be as accurate as possible.