One of the Problems in Using One Set of Accounting

question 95

Multiple Choice

One of the problems in using one set of accounting records for tax reporting and another set of records for internal management reporting is that ________.

• A) it is illegal as well as unethical to do so
• B) the tax authorities may suspect manipulation of records
• C) it is almost impossible to keep the records straight and hard to reconcile the books
• D) the shareholders do not approve of such methods and the market prices will decline

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Definitions:

Foot-In-The-Door Effect

An increase in compliance likelihood for a large request if a smaller request is agreed to first, reinforcing the concept of gradual commitment.

Social Facilitation Hypothesis

A theory suggesting that the presence of others can improve one's performance on tasks, especially those that are simple or well-learned.

Door-In-The-Face Effect

A compliance technique where a larger, unreasonable request is made first, followed by a smaller, more reasonable request that is the actual goal.

Conformity Hypothesis

A theory suggesting that individuals adjust their attitudes, beliefs, or behaviors to align with the norms of a group, often in response to real or imagined group pressure.