Which of the Following Is a Reason Why Accounting,and Accountants,can

question 17

Multiple Choice

Which of the following is a reason why accounting,and accountants,can be considered very powerful?

• A) The emphasis on profitability measures provides support to profitable companies which may not be worthy of support under other measures.
• B) The provision of purported objective information provides users with a source of power to drive changes to a corporation's behaviour.
• C) The output of the accounting process impacts on many decisions which can result in transfers of funds, and therefore wealth.
• D) All of the given options are correct.

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Definitions:

Advertising Tool

Any method or resource used by businesses to promote their products, services, or brand to potential customers.

Short-swing Profits

Profits earned by corporate insiders from buying and selling their company's stock within a short period, regulated by securities laws.

Statutory Insider

A person within a corporation, such as directors or executives, who possesses key information, making them subject to insider trading regulations.

Company Stock

Equity shares issued by a corporation representing ownership in the company.