Economic Consequences of Accounting Standard-Setting Means

question 15

Multiple Choice

Economic consequences of accounting standard-setting means:

• A) Standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard.
• B) Standard-setters must ensure that no new costs are incurred when a new standard is issued.
• C) The objective of financial reporting should be politically motivated to ensure acceptance by the general public.
• D) Accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.

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Definitions:

Immune Response

The bodily system's defense mechanism against pathogens, including the processes of identifying and eliminating harmful agents.

Classical Conditioning

A training process involving the pairing of a naturally occurring stimulus with an environmental stimulus.

Brain-Wave Response

The fluctuations in voltage seen in an electroencephalogram (EEG) that reflect the different stages of brain activity, often used to study sleep, consciousness, and neurological conditions.

Generalization

in psychology refers to the process by which a response that has been learned to one stimulus is extended or applied to other, similar stimuli.