Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Question

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Answer 1

Question

Chapter 1, Problem 1MC

To determine

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Expert Solution & Answer

Answer to Problem 1MC

Option “d”

Explanation of Solution

Disclosure: Disclosure is the act of providing financial information to external users.

Disclosing financial information would result the following potential costs:

Financial disclosures also result in costs being imposed by competitors, apart from obvious cost.
Disclosing too much information can place a company at a competitive disadvantage,
If the expectations of the investors are not met, then it may bring litigation against the managers.

From the above explanation it is clear that “option a, b and c” are incorrect options (partially correct) and only option “d” is a correct answer.

Conclusion

Thus, the correct option is option d.

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Students have asked these similar questions

Economic consequences of accounting standard-setting means: a. standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard. b. standard-setters must ensure that no new costs are incurred when a new standard is issued. c. the objective of financial reporting should be politically motivated to ensure acceptance by the general public. d. accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.

Economic consequences of accounting standard-setting means:a. standard-setters must give fi rst priority to ensuring that companies do not suffer any adverseeffect as a result of a new standard.b. standard-setters must ensure that no new costs are incurred when a new standard is issued.c. the objective of financial reporting should be politically motivated to ensure acceptance by thegeneral public.d. accounting standards can have detrimental impacts on the wealth levels of the providers of financialinformation.

How does the public good of accounting information lead to underproduction in a free market?

Answer 2

Question

Chapter 1, Problem 1MC

To determine

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Expert Solution & Answer

Answer to Problem 1MC

Option “d”

Explanation of Solution

Disclosure: Disclosure is the act of providing financial information to external users.

Disclosing financial information would result the following potential costs:

Financial disclosures also result in costs being imposed by competitors, apart from obvious cost.
Disclosing too much information can place a company at a competitive disadvantage,
If the expectations of the investors are not met, then it may bring litigation against the managers.

From the above explanation it is clear that “option a, b and c” are incorrect options (partially correct) and only option “d” is a correct answer.

Conclusion

Thus, the correct option is option d.

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Answer 3

Question

Chapter 1, Problem 1MC

To determine

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Expert Solution & Answer

Answer to Problem 1MC

Option “d”

Explanation of Solution

Disclosure: Disclosure is the act of providing financial information to external users.

Disclosing financial information would result the following potential costs:

Financial disclosures also result in costs being imposed by competitors, apart from obvious cost.
Disclosing too much information can place a company at a competitive disadvantage,
If the expectations of the investors are not met, then it may bring litigation against the managers.

From the above explanation it is clear that “option a, b and c” are incorrect options (partially correct) and only option “d” is a correct answer.

Conclusion

Thus, the correct option is option d.

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Answer 4

Question

Chapter 1, Problem 1MC

To determine

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Expert Solution & Answer

Answer to Problem 1MC

Option “d”

Explanation of Solution

Disclosure: Disclosure is the act of providing financial information to external users.

Disclosing financial information would result the following potential costs:

Financial disclosures also result in costs being imposed by competitors, apart from obvious cost.
Disclosing too much information can place a company at a competitive disadvantage,
If the expectations of the investors are not met, then it may bring litigation against the managers.

From the above explanation it is clear that “option a, b and c” are incorrect options (partially correct) and only option “d” is a correct answer.

Conclusion

Thus, the correct option is option d.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1MC

To determine

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Expert Solution & Answer

Answer to Problem 1MC

Option “d”

Explanation of Solution

Disclosure: Disclosure is the act of providing financial information to external users.

Disclosing financial information would result the following potential costs:

Financial disclosures also result in costs being imposed by competitors, apart from obvious cost.
Disclosing too much information can place a company at a competitive disadvantage,
If the expectations of the investors are not met, then it may bring litigation against the managers.

From the above explanation it is clear that “option a, b and c” are incorrect options (partially correct) and only option “d” is a correct answer.

Conclusion

Thus, the correct option is option d.

Answer 6

Chapter 1, Problem 1MC

To determine

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Expert Solution & Answer

Answer to Problem 1MC

Option “d”

Explanation of Solution

Disclosure: Disclosure is the act of providing financial information to external users.

Disclosing financial information would result the following potential costs:

Financial disclosures also result in costs being imposed by competitors, apart from obvious cost.
Disclosing too much information can place a company at a competitive disadvantage,
If the expectations of the investors are not met, then it may bring litigation against the managers.

From the above explanation it is clear that “option a, b and c” are incorrect options (partially correct) and only option “d” is a correct answer.

Conclusion

Thus, the correct option is option d.

Answer 7

Chapter 1, Problem 1MC

To determine

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Answer 8

Expert Solution & Answer

Answer to Problem 1MC

Option “d”

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Disclosure: Disclosure is the act of providing financial information to external users.

Disclosing financial information would result the following potential costs:

Financial disclosures also result in costs being imposed by competitors, apart from obvious cost.
Disclosing too much information can place a company at a competitive disadvantage,
If the expectations of the investors are not met, then it may bring litigation against the managers.

From the above explanation it is clear that “option a, b and c” are incorrect options (partially correct) and only option “d” is a correct answer.

Answer 12

Conclusion

Thus, the correct option is option d.

Answer 13

Ch. 1 - Prob. 1MC Ch. 1 - Prob. 2MC Ch. 1 - Prob. 3MC Ch. 1 - Prob. 4MC Ch. 1 - Prob. 5MC Ch. 1 - Prob. 1Q Ch. 1 - Prob. 2Q Ch. 1 - Prob. 3Q Ch. 1 - Prob. 4Q Ch. 1 - Prob. 5Q

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Concept explainers

Identify the option that is relevant to the potential cost of the public disclosure of accounting information.

Answer to Problem 1MC

Explanation of Solution

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Chapter 1 Solutions