Disclosing Information in More Usable Ways to Decision-Makers

question 14

Multiple Choice

Disclosing information in more usable ways to decision-makers:

• A)can decrease the occurrence of rational ignorance in decision-making.
• B)can nudge people toward making better decisions.
• C)has been useful in achieving desired outcomes, such as convincing more people to buy gas-efficient cars.
• D)All of these are true.

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Definitions:

Liabilities

Financial obligations or debts owed by a business to external organizations or individuals.

Accrued Revenues

Assets (receivables) created when revenues are earned, but cash will be collected from customers in the future; created at end of period during the adjustment process to reflect the amount of revenue earned by providing goods or services over time to customers who will pay in the future.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company assets.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the company.