Managers May Select Accounting Policies for Which of the Following

question 37

Multiple Choice

Managers may select accounting policies for which of the following reasons?

• A) To provide useful information to users
• B) To avoid violating debt contracts
• C) To influence compensation plans
• D) All of the above are correct

---

Definitions:

Criterion Deficiency

A situation where a performance evaluation fails to capture all aspects of job performance, leading to an incomplete assessment.

Criterion Contamination

Occurs when performance appraisals or evaluations include factors irrelevant to the actual job performance, leading to inaccurate assessments.

Performance Review

A formal assessment in which the performance of an employee is documented and evaluated, often leading to feedback and development plans.