What Reason Is Given for the Stagnation of Accounting Development

question 80

Multiple Choice

What reason is given for the stagnation of accounting development during the "Cultural Revolution" in China (1966-1976) ?

• A)Over-simplification of accounting was pursued to make it accessible to a broad populace.
• B)There was very little business being transacted in China during the Cultural Revolution.
• C)Businesses in China were converting to international accounting standards during this period of time so they stopped developing new standards.
• D)Auditors took over the development of accounting practice.

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Definitions:

Labor Time

The amount of time workers spend producing goods or delivering services.

Linear Production

A production process that exhibits constant rates of input substitution and output, often depicted as a straight line in a graph.

Economic Models

Simplified representations of complex economic processes used to predict future economic activity or to understand economic dynamics.

Assumptions

Premises or conditions that are accepted as true without proof, used as a basis for reasoning or conduct in theories and models.