Which of the Following Is the Main Advantage of Using

question 17

Multiple Choice

Which of the following is the main advantage of using accounting earnings instead of share prices to determine bonuses?

• A) Share prices are influenced by market forces that are outside the control of management.
• B) Accounting information is independently audited.
• C) Accounting information is unbiased.
• D) Share prices may be manipulated by managers engaging in insider trading.

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Definitions:

Anticline

A type of fold in sedimentary rocks that resembles an arch, with the oldest rock layers at its core, indicative of compressional tectonic forces.

Syncline

a downward-curving (trough-like) fold in rock layers where the youngest materials are at the center.

Monocline

A geological fold in which all strata are inclined in the same direction, forming a step-like feature in the landscape.

Basin

1. A low-lying area or an area in which sediments accumulate with no surface outlet. 2. A structural feature toward which rock strata are inclined in all directions.