Which of the Following Statements Does Not Describe Why Accounting

question 24

Multiple Choice

Which of the following statements does not describe why accounting regulation is needed?

• A) If a process is regulated, even though people might not understand the regulation they are more likely to have confidence in it.
• B) Regulation is put in place to protect the favoured positions of those with capital.
• C) Regulation is put in place so that the interest of the public is served.
• D) If the financial system is regulated, the resulting increased community confidence will lead to a reduced cost of capital for all firms.

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Definitions:

Power And Control

The ability to influence or direct people's behavior and the course of events.

Leadership

The ability to guide, direct, or influence people toward achieving a common goal or mission with competence and integrity.

Fairness Concept

A principle of equitable treatment and justice among individuals in social, business, and legal dealings.

Equity And Compensation

Refers to the shares or stock a company may offer to its employees as part of their remuneration package.