Which of the Following Would Be a Reason Where IASB

question 21

Multiple Choice

Which of the following would be a reason where IASB would permit companies to change accounting policy?

• A)The change would allow the company to present a more favorable profit picture.
• B)The change would result in the financial statements providing more reliable and relevant information about a company`s financial position, financial performance, and cash flows.
• C)The change is made by the internal auditor.
• D)The change will be long-term.

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Definitions:

Operant Conditioning

A learning principle where behaviors are modified by the consequences that follow them, with rewards increasing desired actions and punishments reducing their occurrence.

Predictability

The ability to accurately forecast future events or behaviors based on patterns or prior knowledge.

Rescorla And Wagner

Psychologists who developed a model explaining how the strength of a stimulus-response association is determined in classical conditioning.

Instinctive Drift

The tendency of learned behavior to gradually revert to biologically predisposed patterns.