What Has Been the Main Thrust of Recent Changes in the Financial

question 46

Multiple Choice

What has been the main thrust of recent changes in the financial reporting rules following the financial scandals of Enron,Worldcom,etc.?

• A)To improve internal control over companies' financial reporting.
• B)To add to the work of the companies' external accountants.
• C)To force the companies' to disclose more of their internal information.
• D)To provide incentives to increase their net income.

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Definitions:

Actor-Observer Effect

The tendency to attribute one's own actions to external causes while attributing others' actions to their character or personality.

Interested

Having an attraction or curiosity about something or someone.

Uninterested

describes a lack of interest or concern about something or someone.

Actor-Observer Effect

A psychological phenomenon where people tend to attribute their own actions to external factors while attributing others' actions to internal characteristics.