In What Ways Can Accounting Cause Financial Reporting Problems? I

question 12

Multiple Choice

In what ways can accounting cause financial reporting problems? i. disclosure can lead to constraining of the behaviour of a manager
ii. accounting information may lead a manager to making a different approach to a company's original financial approach
iii. there is a drive or desire to meet share market expectations based on these accounting results
iv. the manipulation of earnings to meet market expectations

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

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Definitions:

10,000 Words

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Logical Extension

A reasoning process in which conclusions are logically deduced from premises, expanding upon original ideas with rational coherence.

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An idea or thought that is original and not previously perceived.

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A cognitive process proposed by Piaget, describing the balance between assimilation and accommodation to maintain or restore cognitive stability.