Which of the Following Is a Central Assumption of Positive

question 12

Multiple Choice

Which of the following is a central assumption of Positive Accounting Theory?

• A) Individuals act solely on the basis of self-interest.
• B) Firms seek to maximise profits.
• C) The interests of principals and agents are not aligned.
• D) Financial statements will be audited regardless of legal requirements.

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Definitions:

Political Equality

A principle that emphasizes equal rights and opportunities in participating in political activities and decision-making processes for all citizens.

Right To Vote

The legal right granted to eligible citizens to participate in the election process and select their representatives and leaders.

Concept Of Liberty

The philosophical and political principle that emphasizes the freedom of individuals from coercion or constraints by others or the government.

Limited Government

A government system in which its power and functions are restricted by law, usually outlined in a constitution, to protect citizens' freedoms.