Bennett Is in the Process of Making an Important Decision

question 51

Multiple Choice

Bennett is in the process of making an important decision for his firm.Which of the following actions strengthens the argument that Bennett is a utilitarian?

• A) Bennett chooses the alternative that promises the highest net welfare to society as a whole.
• B) Bennett implements the alternative that allocates society's benefits and burden most fairly.
• C) Bennett considers whether everyone is getting what he deserves.
• D) Bennett determines whether anyone's rights are negatively affected by an alternative.

---

Definitions:

Comparability

A qualitative characteristic of financial information that allows stakeholders to identify similarities and differences between two or more sets of economic facts.

Faithful Representation

A fundamental qualitative characteristic in accounting, ensuring that financial information accurately reflects the economic events it purports to represent.

Financial Reporting

Generating documents that unveil the financial situation of a company to stakeholders, including managers, investors, and regulatory authorities.

Time Period Assumption

an accounting principle that divides an enterprise's life into small periods of time for reporting and analysis purposes.