One Purpose of Generally Accepted Accounting Principles Is to Make

question 57

True/False

One purpose of generally accepted accounting principles is to make accounting information prepared by different companies more comparable.

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Definitions:

Validity Effect

The tendency to believe information is correct or valid simply because it has been repeated many times.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Self-Censorship

The act of withholding one's thoughts, opinions, or feelings due to fear of social or official repercussions.