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.