Which of the Following Statements Is False Regarding Providers of Financing

question 46

Multiple Choice

Which of the following statements is false regarding providers of financing?

• A) There is less pressure to provide accounting information in those countries in which financing is primarily by banks.
• B) In countries where capital stock is the primary source of financing, accounting emphasizes the income statement.
• C) Disclosures are less extensive in those countries financed primarily by stock.
• D) Bankers tend to focus more on solvency and stockholders focus more on profitability.
• E) As companies become more dependent on financing by stock, more information is demanded.

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Definitions:

Money Supply

The complete inventory of monetary assets within an economy at a defined moment.

Money Supply Increases

A situation where the total amount of money in circulation within an economy is expanded.

Nominal GDP

The gross domestic product measured at current market prices, not adjusting for inflation, reflecting the value of all goods and services produced.

Real GDP

The total value of all goods and services produced by an economy over a specific time period, adjusted for inflation.