Which of the Following Is True with Regards to Judgement

question 115

Multiple Choice

Which of the following is true with regards to judgement and flexibility in selecting accounting methods and applying accounting standards?

• A) Flexibility makes it difficult if not impossible to prepare financial statements that allow users to compare the results of operations of similar companies in the same industry.
• B) Accounting standards allow very little flexibility in the choice of methods as accounting rules tend to be strict and clear minimizing the opportunity for management judgement.
• C) Flexibility in the selection of methods and application of accounting standards allows management to best reflect the economic realities of a company.
• D) Financial statement information is not enhanced by allowing flexibility in the choice of accounting methods used.

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Definitions:

Secondary Reinforcers

Stimuli that become reinforcing through their association with primary reinforcers, not inherently rewarding but learned to be so.

Fixed Interval Schedule

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Reinforcement Given

In behavioral psychology, a stimulus or reward that follows a behavior and increases the likelihood of that behavior being repeated.

Variable Time Interval

A scheduling method in operant conditioning where reinforcements are given after varying time intervals.