Which of the Following Is Correct with Respect to Generally

question 272

Multiple Choice

Which of the following is correct with respect to generally accepted accounting principles?

• A)Public and private businesses can no longer use generally accepted accounting principles.
• B)They are used in many foreign countries but not in Canada.
• C)Public companies in Canada have moved away from using generally accepted accounting principles and have adopted International Financial Reporting Standards (IFRS).
• D)Private companies must use the new International Financial Reporting Standards (IFRS).
• E)None of these statements is correct.

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Definitions:

Deindividuation

A psychological state characterized by reduced self-awareness and diminished social identity, leading to uninhibited and sometimes antisocial behavior.

Validity Effect

The tendency to believe information is correct or valid simply because it has been repeated many times.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.