Which of the Following Arguments Is Used in Support of Reducing

question 12

Multiple Choice

Which of the following arguments is used in support of reducing accounting regulation?

• A) Accounting information is like any other good, and the forces of supply and demand should be allowed to operate so that the optimal amount of accounting information is produced.
• B) The capital market operates quite efficiently, and will impose penalties on managers who elect to provide biased information about an organisation's financial performance and position.
• C) Individuals act in their own self-interest and will use the given regulation to maximise their own wealth.
• D) All of the given options are correct.