Asked by Ashley Scott on Jun 07, 2024
Verified
If the financial reporting environment were unregulated,disclosure would occur voluntarily
A) as long as other companies in the reporting company's industry voluntarily disclosed financial information.
B) only to analysts that the company believes will report favorably on the company's prospects.
C) only when managers wanted to raise additional capital.
D) as long as the incremental benefits to the company from supplying financial information exceeded the incremental costs of providing the information.
Incremental Benefits
The additional advantages or gains received from an action or decision, beyond what was previously available.
Financial Reporting
Constructing communications that display the fiscal situation of an enterprise to its management team, financial backers, and governmental officials.
Voluntary Disclosure
The practice of a firm releasing non-required information willingly to its stakeholders, aiming to increase transparency and reduce information asymmetry.
- Discern the underlying causes and impacts of financial statement manipulation.
- Comprehend the assorted categories of disclosure expenses and their impact on the process of financial reporting.
Verified Answer
Learning Objectives
- Discern the underlying causes and impacts of financial statement manipulation.
- Comprehend the assorted categories of disclosure expenses and their impact on the process of financial reporting.
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