According to Positive Accounting Theory,the Existence of Debt Covenants

question 27

Multiple Choice

According to Positive Accounting Theory,the existence of debt covenants:

• A) Can be explained from an efficiency perspective, and gives management an incentive to manipulate accounting information from an opportunistic perspective
• B) Can be explained from an opportunistic perspective, and gives management an incentive to manipulate accounting information from an efficiency perspective
• C) Can be explained from both efficiency and opportunistic perspectives
• D) Cannot be explained

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Definitions:

Ciliates

Single-celled or colonial protists with cilia.

Cellulose

A complex carbohydrate comprised of glucose units, forming the primary structural component of plant cell walls.

Brown Algae

Brown algae are a group of multicellular marine plants known for their distinctive brown or olive color, which results from the presence of the pigment fucoxanthin.

Largest Protists

Protists, being a diverse group of eukaryotic organisms, range in size, with the largest ones like kelp reaching lengths of several meters.