Why Is Public Disclosure of Financial Information Less Important in Japan

question 57

Multiple Choice

Why is public disclosure of financial information less important in Japan than in other industrialized countries?

• A)Very few corporations
• B)Undeveloped stock exchange
• C)Heavy reliance on bank financing
• D)Strong government control of corporations

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Definitions:

Asset Characteristics

The inherent properties and qualities of an asset that affect its value, performance, and risk profile.

MACRS Depreciation

The Modified Accelerated Cost Recovery System is a method of depreciation used for tax purposes in the United States, allowing for faster depreciation in the early years of an asset's life.

Deferred Tax Liability

A tax obligation that arises when taxable income and accounting income differ, to be paid in future periods when those differences reverse.