Under the Efficiency Perspective of PAT,where Regulation Bans an Accounting

question 33

Multiple Choice

Under the efficiency perspective of PAT,where regulation bans an accounting method being used by a particular organisation:

• A) This will lead to lower monitoring costs because management does not have as wide a range of methods to choose from.
• B) This will lead to more useful reporting of performance because principals will be able to compare reports between different organisations.
• C) This will lead to inefficiencies, as the financial statements will no longer provide the best reflection of the performance of the organisation.
• D) This decreases the chance that agents will undertake opportunistic behaviour to provide principals with creative accounts.

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Definitions:

Sensory Organs

Specialized organs of the body that process information from the environment, such as eyes, ears, skin, nose, and tongue.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, playing a critical role in transmitting neural signals between the brain and the rest of the body.

Sympathetic Nerve Fibers

Nerve fibers that are part of the sympathetic nervous system, involved in the body's fight or flight response by activating bodily systems.

Parasympathetic Nerve Fibers

Components of the autonomic nervous system that help the body to relax and conserve energy, often referred to as the "rest and digest" system.