The 'Efficiency Perspective' of Positive Accounting Theory Suggests That Firms

question 8

Multiple Choice

The 'efficiency perspective' of Positive Accounting Theory suggests that firms will:

• A) Adopt the accounting methods that require the least resources to implement
• B) Adopt the accounting methods that result in the highest reported earnings
• C) Adopt the accounting methods that result in the lowest reported earnings
• D) Adopt the accounting methods that best reflect the underlying economic performance of the entity

---

Definitions:

Fully Functioning

Refers to an individual who is living their life to its fullest potential, often associated with Carl Rogers' conception of self-actualization.

Personal Relationships

Connections or bonds between individuals based on factors such as love, friendship, kinship, or professional interactions.

Humanistic Approach

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.

Abraham Maslow

Abraham Maslow was an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.