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:

Fixed-Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, often used in behavior modification.

Stimulus Generalization

The psychological phenomenon whereby a response to a specific stimulus becomes associated with other stimuli, leading to a similar response.

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.

Fixed-Ratio

A type of schedule in behavior reinforcement where a response is reinforced only after a specified number of responses.