The Idea That Claims in One's Self-Interest Are Credible Only

question 99

Multiple Choice

The idea that claims in one's self-interest are credible only if they are supported by actions that would be too costly to take if the claims were untrue is known as the:

• A)pecking order hypothesis.
• B)credibility principle.
• C)lemons principle.
• D)signaling theory of debt.

---

Definitions:

Missing Amount

A term referring to unaccounted funds or discrepancies found in financial records during a reconciliation or audit process.

Accounting Records

Documentation and books that hold financial information and transactions of a business, essential for preparing financial statements.

Computer Equipment

The physical hardware used in or with computers, including peripherals such as keyboards, monitors, external drives, and other devices.

Initial Investment

The initial amount of money spent to start a project, acquire an asset, or invest in a financial product.