Which Statement Is Correct

question 36

Multiple Choice

Which statement is correct?

• A)The amount and types of excessive accruals are directly related to earnings quality.
• B)Excessive accruals are transparent and improve the quality of financial reporting.
• C)Users can routinely determine the contractual incentives causing excessive accruals.
• D)Users like earnings that closely correspond to reported results without management bias.

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Definitions:

Preventable Cause

A factor or an event leading to a condition or situation that can be avoided through specific measures or interventions.

Mortality

The state of being subject to death; often used in statistics to refer to the death rate within a population.

Sex Characteristic

Traits associated with male or female bodies that are not directly linked to reproduction, such as breast development in females or facial hair in males.

Gender Characteristic

Traits or attributes traditionally associated with a particular gender, including roles, behaviors, activities, expectations, and expressions.