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.

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Definitions:

Independent Variable

An independent variable is the variable in an experiment or study that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

In an experiment, the variable that is tested and measured, expected to change due to the independent variable.

Experimental Group

In research, a group of subjects exposed to the variable under study to determine its effects, contrasted with a control group.

Placebo

An inactive substance or treatment given to a patient instead of medication, used in controlled experiments to test effectiveness.