The Predictions of PAT Formulated by Watts and Zimmerman (1990)are

question 31

Multiple Choice

The predictions of PAT formulated by Watts and Zimmerman (1990) are largely concentrated on the following predictions:

• A) Managers of companies with bonus plans are likely to choose income increasing accounting policies.
• B) Managers of companies that are close to violating accounting-based debt covenants are likely to choose income increasing accounting policies.
• C) Managers of companies that are subject to greater political costs are likely to choose income decreasing accounting policies.
• D) All of the given answers are correct.

---

Definitions:

Geometry

The branch of mathematics concerned with the properties and relations of points, lines, surfaces, and solids.

Ammonia Molecule

A compound consisting of one nitrogen atom and three hydrogen atoms (NH3), often used in cleaning products and as a fertilizer.

Trigonal Pyramidal

A molecular geometry where a central atom is surrounded by three atoms placed at the corners of a pyramid, with a vertex missing.

Central Atom

In a molecular structure, the atom that is bonded to several other atoms.