Which Statement Is True

question 5

Multiple Choice

Which statement is true?

• A) The provision of information for control is regarded as a more appropriate objective for external reporting than the decision-usefulness objective
• B) Decision-usefulness as the objective for financial reporting is a relatively recent innovation
• C) The historical cost measurement basis is specifically designed to meet the decision-usefulness objective
• D) None of the statements is true, i.e., all are untrue

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Definitions:

Stereotyping

The act of assigning a set of characteristics to a group of people based on oversimplifications or assumptions, often leading to misrepresentation.

Organizational Settings

refers to the work environment and conditions under which a company or institution operates, including its culture, structure, and processes.

Fundamental Attribution Error

A cognitive bias in which people tend to overemphasize personal characteristics and ignore situational factors when explaining others' behavior.

Lateness

The act of not being on time, which can disrupt schedules, demonstrate a lack of professionalism, and affect productivity and relationships.