Arguments Against the Regulation of Accounting Information Include

question 17

Multiple Choice

Arguments against the regulation of accounting information include:

• A) Mandated disclosures are cheap to provide and by their nature will devalue the worth of the information being provided.
• B) By making so many choices of accounting methods available under the standards, the efficiency with which the information is provided will be enhanced.
• C) Companies will be motivated to disclose good news but not disclose bad news if they are not forced to make certain mandated disclosures (the 'lemons' argument).
• D) Managers of the organisation are in the best place to determine what information should be produced to increase the confidence of external stakeholders.

---

Definitions:

One-Sample T-Test

A statistical test used to compare the mean of a single group to a known average or standard.

Effect Size

A quantifiable measure of the magnitude of an experimental effect, independent of sample size.

Guidelines

Standard rules or instructions set forth for conducting processes or making decisions.

Null Hypothesis

An assertion in statistical analysis that proposes no significant difference or effect exists between certain characteristics or groups.