Which of the Following Is Not an Economic Consequence of Financial

question 2

Multiple Choice

Which of the following is not an economic consequence of financial reporting?

• A) Financial information can affect the distribution of wealth among investors. More informed investors, or investors employing security analysts, may be able to increase their wealth at the expense of less informed investors.
• B) Financial information can affect the level of risk accepted by a firm. Focusing on short-term, less risky projects may have long-term detrimental effects.
• C) Financial information can affect the rate of capital formation in the economy and result in a reallocation of wealth between consumption and investment within the economy.
• D) Financial information can affect the allocation of psychic income among investors.

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Definitions:

African Americans

Refers to citizens or residents of the United States who have ancestry from any of the black racial groups of Africa.

Menial Labor

Work that requires minimal skill and is often characterized by low pay and status.

Integrated Units

Refers to military or other organizational units that include members without regard to race, sex, religion, or national origin, focusing on unity and teamwork.

Wilson's Belief

Refers to the ideological principles and foreign policy stance of Woodrow Wilson, the 28th President of the United States, particularly his advocacy for democracy and internationalism including the creation of the League of Nations.