Explain Why You Think the Authors of Studies Cited in the Text

question 16

Essay

Explain why you think the authors of studies cited in the text were concerned about whether a principles-based approach to standard setting might lead to earnings management.

---

Definitions:

Unbalanced Relationship

A relationship where there is an unequal distribution of effort, emotion, or power between the parties involved.

Married Couple

Two individuals united by marriage, forming a legal and social partnership recognized by various institutions.

Festinger

Refers to Leon Festinger, known for cognitive dissonance theory, which suggests that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony or dissonance.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thought, judgment, and problem-solving.