Which of These Is a Fundamental Purpose of Accounting Standards

question 3

Multiple Choice

Which of these is a fundamental purpose of accounting standards? Improving:
i. accountants' ethics.
ii. social accountability.
iii. share price.
iv. resource allocation.

• A) i, ii, iii, iv
• B) i, ii,
• C) iv
• D) iii

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Definitions:

Cohesive Groups

Groups characterized by strong bonds and unity among members, which aid in collaborative efforts and maintaining group integrity.

Situational Factors

External conditions or circumstances that can influence an individual's behavior, decisions, or performance.

Conforming

The act of aligning one's beliefs, attitudes, or behaviors with those of a group or societal norms, sometimes at the expense of personal preferences.

Asch's Experiment

Asch's Experiment was a psychological study conducted by Solomon Asch that demonstrated the power of conformity in groups, showing how peer pressure could influence an individual to make an incorrect judgement.