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Question
Financial reporting controversies are typified by all of the following except
A. When one accounting option for a controversial reporting situation results in higher net income than the other available options, that option will be preferred by management of the reporting entity and the securities market.
B. The debate regarding the two alternative accounting treatments is endlessthere is no "right" or "wrong" answer.
C. The reporting options have the potential to influence managerial behavior.
D. The securities market appears to recognize that the differing managerial incentives have implications for valuing firms.
Answer
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