Which one of the following characteristics of the positive accounting theory brings forward the problem of Opportunistic Behavior? O a. It wants to minimize costs associated with contracts of the firm. O b. It recognizes the flexibility in choosing accounting policies by the firm. O c. It recognizes the existence of economic consequences in the firm. d. It aims to maximize the prospects for survival of the firm.

Which one of the following characteristics of the positive accounting theory brings forward the problem of Opportunistic Behavior? O a. It wants to minimize costs associated with contracts of the firm. O b. It recognizes the flexibility in choosing accounting policies by the firm. O c. It recognizes the existence of economic consequences in the firm. d. It aims to maximize the prospects for survival of the firm.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 16MC: Which of the following is true about earnings management? A. It works within the constraints of...

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State whether the following questions is True (T) or False (F): a) Management accounting is future oriented. b) Management accounting is required to follow generally accepted accounting principles. c) Financial accounting examines monetary and non-monetary events. d) Cost accounting is used as a means of fixing a selling price.
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How can a company use creative accounting practices to make its financial statements appear better than they actually are?