Which of the Following Is an Example of a Positive

question 2

Multiple Choice

Which of the following is an example of a positive theory?

• A) Fair value should be used to measure assets in the financial statements, so as to provide more relevant information
• B) Cost should be used to measure assets in the financial statements because it is more reliable and accurate
• C) The conceptual framework for accounting
• D) A theory that explains why managers prefer or choose particular accounting methods or policies over others

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Definitions:

Personal Characteristics

Refers to the attributes, traits, or abilities of an individual, including attitudes, behaviors, and cognitive abilities.

Environmental Factors

External elements that can affect an individual’s or organization's performance, including political, economic, social, technological, environmental, and legal influences.

Role Conflict

A situation where an individual encounters contradictory expectations from different roles they are tasked to fulfill, leading to stress or confusion.

Promotions

The advancement of an employee's rank or position in an organizational hierarchy.