An Argument to Support the Requirement That All Companies Over

question 13

Multiple Choice

An argument to support the requirement that all companies over a certain size should adhere to accounting standards is:

• A)Larger companies have greater political and economic importance and this increases the demand for financial information about the entity by external users.
• B)Larger companies can afford to pay for complex accounting systems and the experts necessary to design and maintain them.
• C)The Conceptual Framework and accounting standards are designed for larger enterprises.
• D)The Security Exchange Regulators should only be responsible for large enterprises.

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Definitions:

Temporary Support

Short-term assistance offered to individuals or systems during periods of change or stress, aiming at stabilization.

Task

An activity or assignment that needs to be completed, often as part of a larger project or goal.

Ecological Approach

A perspective or method in various disciplines that emphasizes the importance of understanding organisms, including humans, in relation to their environment.

Microsystem

An ecological model's term for the immediate environment in which individuals interact and are directly influenced, such as family and school.