Which of the Following Does Whittington (2008)see as a Main

question 43

Multiple Choice

Which of the following does Whittington (2008) see as a main feature of the alternative view?

• A)Stewardship,defined as accountability to present shareholders,is a distinct objective,ranking equally with decision usefulness.
• B)Reliability is less important and is better replaced by representational faithfulness,which implies a greater concern for capturing economic substance,and less with statistical accuracy.
• C)Relevance is the primary characteristic.
• D)Accounting information needs ideally to reflect the future,not the past,so past transactions and events are only peripherally relevant.

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Definitions:

Measure of Activity

An identifier used to gauge the level or intensity of activity within a certain process or system.

Planning Budget

A budget designed for a specific level of activity, often used as a tool for performance evaluation and cost management.

Net Operating Income

The profit a company makes from its normal business operations, excluding expenses from financing and taxes.

Service Company

A business that provides intangible products, such as services or expertise, rather than physical goods.