Which of These Is Not Generally Regarded as a Reason

question 46

Multiple Choice

Which of these is not generally regarded as a reason for the recent spate of dubious accounting practices by large companies?

• A) Lack of accounting standards.
• B) Pressure on managers to meet investors' unrealistic expectations for continually rising profits.
• C) Greed by executives.
• D) Too rapid growth financed by borrowing which leads to a liquidity crisis.

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Definitions:

Strategic Purposes

Objectives or goals that are designed to achieve the long-term vision of an organization through planned and purposeful actions.

Equity Securities

Financial instruments representing ownership interest in a corporation, such as stocks.

Debt Investments

Financial assets involving lending money to an entity (corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.