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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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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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.