Complexity in Accounting Systems _____

question 152

Multiple Choice

Complexity in accounting systems _____.

• A)is desirable if it reflects the complexity of the underlying business
• B)can usually be justified on a cost-benefit basis
• C)is necessary to manage the behavioral implications of the accounting system
• D)frequently generates costs of gathering and interpreting data that often exceed prospective benefits

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Definitions:

High Dividend Payout

A scenario where a company distributes a large portion of its earnings to its shareholders in the form of dividends.

Projects

Specific tasks or programs undertaken to meet particular goals, often requiring significant time, resources, or investment.

Information Content Effect

The market’s reaction to a change in corporate dividend payout.