What theory on the outcomes of providing accounting information attempts to assess an individual's ability to use information?
A) Agency theory
B) Efficient markets
C) Human information processing
D) Capital asset pricing model

Question

Quizplus · Accepted Answer

The theory of human information processing attempts to assess an individual's ability to use accounting information effectively. It focuses on how individuals perceive, store, and utilize accounting information to make decisions. Agency theory is concerned with the relationship between principals and agents, efficient markets theory suggests that stock prices reflect all available information, and the capital asset pricing model is used to calculate expected returns on investments. None of these theories focus specifically on an individual's ability to use accounting information.

What Theory on the Outcomes of Providing Accounting Information Attempts