Arguments Against the Regulation of Accounting Information Include

question 48

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) That 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.
• E) None of the given answers.

---

Definitions:

Heart Rate

The number of heartbeats per unit of time, typically expressed in beats per minute (bpm), indicating the heart's efficiency in circulating blood throughout the body.

Brain Activity

The electrical and metabolic phenomena occurring within the brain that are associated with functional operations and processes.

Muscles

Tissues in the body that have the ability to contract, enabling movement and force generation within the body.

Breathing Rate

The number of breaths taken per minute, which can vary with physical exertion, health conditions, stress, and other factors.