Which of the Following Statements Is a Valid Criticism of the Accounting

question 39

Multiple Choice

Which of the following statements is a valid criticism of the accounting profession with respect to its consideration of social and environmental reporting?

• A) Practice of discounting liabilities, particularly those liabilities that will not be settled for many years, allows the recognition of future expenditures on environmental clean-up in the current period.
• B) Gray, Owen and Adams (1996) argue that discounting makes good economic sense but discourages entities in undertaking environmentally friendly activities.
• C) The profession has a narrow focus of users of social and environmental reports limiting this to investors, governments and institutional investors.
• D) AASB 137 "Provisions, Contingent Liabilities and Contingent Assets" limits the obligations relating to environmental performance to legal obligations.
• E) None of the given answers

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Definitions:

Secession

The act of withdrawing formally from membership in a federation or body, especially a political state.

South Carolina

A state in the southeastern United States, known for its roles in both the American Revolution and the Civil War.

Buchanan's Reaction

This is not a widely recognized term in a general context; it might refer to a specific event or opinion related to James Buchanan, 15th President of the United States, but without more context, a detailed definition can't be provided.

Secession Crisis

A period of intense conflict and divisiveness within a country around the topic of regions or states declaring independence and breaking away from the central government.