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:

Status Quo

The existing state of affairs or the current condition, typically used in the context of social, political, or economic issues.

Avoid Risk

The strategy of minimizing exposure to potential losses or harm by carefully managing decisions and actions.

Loss

The state of being deprived of or of being without something that one has had.

Warranted Inference

A logically justified conclusion based on available evidence or premises.