Which of the Following Statements Is a Valid Criticism of the Accounting

question 8

Multiple Choice

Which of the following statements is a valid criticism of the accounting profession with respect to its consideration of social and environmental reporting?

• A)Practice of discounting liabilities, particularly those liabilities that will not be settled for many years, allows the recognition of future expenditures on environmental clean-up in the current period.
• B)Gray, Owen and Adams (1996) argue that discounting makes good economic sense but discourages entities in undertaking environmentally friendly activities.
• C)The profession has a narrow focus of users of social and environmental reports limiting this to investors, governments and institutional investors.
• D)IAS 37 Provisions, Contingent Liabilities and Contingent Assets limits the obligations relating to environmental performance to legal obligations.

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Definitions:

Eating Disorder

Mental disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa or bulimia nervosa.

Underweight

A condition characterized by a body weight considered too low to be healthy, potentially leading to various health issues.

Relationship Maintenance

The actions and activities used to sustain the desired quality of a relationship.

Active Relationship Maintenance

Efforts made consciously by individuals in a relationship to preserve, protect, and enhance their connection.