The Major Reason for the Existence of Generally Accepted Accounting

question 51

Multiple Choice

The major reason for the existence of generally accepted accounting principles is to:

• A) force accountants to all act in the same way.
• B) increase business profits.
• C) improve the standard of accounting information for decision-making.
• D) make accountants legally liable for errors.

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Definitions:

Kurt Lewin

A psychologist known for his pioneering work in social, organizational, and applied psychology, including the development of field theory.

Evolutionary Principles

Concepts based on evolution, explaining how natural selection and adaptation contribute to the behavior and traits of organisms.

Mental Shortcuts

Cognitive strategies that simplify decision making by reducing the amount of information processed.

Cognitive Misers

A theory suggesting that humans, in an effort to conserve mental energy, prefer to rely on simple and efficient thought processes rather than engaging in more effortful and complex reasoning.