What is one of the ways that accounting is used to direct and control the manager of a corporation? a. Threatening to tell shareholders a mangers income if a manager makes a ‘poor financial’ decision. b. Linking of a mangers performance to a bonus that depends on accounting profit. c. Making decisions based on the accounting information regardless of managerial input. d. Using income smoothing to assure a manager that they can invest in a low risk investment.
What is one of the ways that accounting is used to direct and control the manager of a corporation? a. Threatening to tell shareholders a mangers income if a manager makes a ‘poor financial’ decision. b. Linking of a mangers performance to a bonus that depends on accounting profit. c. Making decisions based on the accounting information regardless of managerial input. d. Using income smoothing to assure a manager that they can invest in a low risk investment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is one of the ways that accounting is used to direct and control the manager of a corporation?
a.
Threatening to tell shareholders a mangers income if a manager makes a ‘poor financial’ decision.
b.
Linking of a mangers performance to a bonus that depends on accounting profit.
c.
Making decisions based on the accounting information regardless of managerial input.
d.
Using income smoothing to assure a manager that they can invest in a low risk investment.
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