Why Is It Important to Use Plain Language in Business

question 59

Essay

Why is it important to use plain language in business writing,especially when writing to non-native English speakers?

Understand the accounting treatments for losses on long-term contracts and special revenue recognition cases such as franchise fees and bundled sales transactions.

Distinguish between revenue recognition methods and their impact on financial statements and retained earnings.

Comprehend the accounting for billings on construction in progress and its effects on balance sheets.

Recognize the ethical considerations related to revenue recognition and the potential for earnings management within GAAP guidelines.

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Definitions:

Reactance

A psychological reaction that occurs when an individual feels their freedom to choose is being restricted, leading them to resist or do the opposite of what is being imposed.

Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Temporal Discounting

The tendency for people to value immediate rewards more highly than future rewards, often leading to impulsive decisions.

Risk Aversion

The tendency to prefer certainty over uncertainty, characterized by a preference for safe options over risky ones.