Which of the Following Statements Is Correct in Relation to International

question 11

Multiple Choice

Which of the following statements is correct in relation to International accounting research?

• A)It often adopts a social welfare perspective.
• B)This research area declined in the second half of the twentieth century due to harmonisation.
• C)Agency or contracting theory underlies much of this research.
• D)It includes research into differences in accounting practices and also considers contextual and cultural influences on financial accounting.

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Definitions:

GAAP

Generally Accepted Accounting Principles, standard guidelines and procedures for financial accounting and reporting in the U.S.

Indirect Method

A method used in cash flow statements where net income is adjusted for items that affected reported net income but did not result in an actual cash flow.

Direct Method

A cash flow statement presentation that lists actual cash inflows and outflows from operating activities.

FASB

The Financial Accounting Standards Board (FASB) is an organization responsible for establishing and improving financial accounting standards in the United States.