Which of the Following Is Not a Reason Why Traditional

question 27

Multiple Choice

Which of the following is not a reason why traditional financial accounting may be unable to reflect the social and environmental impact of organisations?

• A) Externalities are difficult to measure.
• B) Traditional financial accounting typically discounts future liabilities to present value.
• C) Accountants are unable to understand the social and environmental impacts of an organisation.
• D) Traditional financial accounting adopts the 'entity assumption'.

---

Definitions:

Third-party

An individual or group besides the two involved in a transaction or legal matter.

Possession

The actual holding or control of property, whether owned or not.

Engine

A machine designed to convert energy into useful mechanical motion to power vehicles, generators, and other devices.

Transmission

The act or process of transferring something from one place, person, etc., to another, commonly used in contexts like the transmission of electrical power or infectious diseases.