A manager electing to adopt a depreciation method that increases income,but does not reflect the actual use of the asset,is consistent with:
A) The efficiency perspective of Positive Accounting Theory
B) The opportunistic perspective of Positive Accounting Theory
C) Both the opportunity and the efficiency perspectives of Positive Accounting Theory
D) Neither the opportunity nor the efficiency perspectives of Positive Accounting Theory

Question

Quizplus · Accepted Answer

The opportunistic perspective of Positive Accounting Theory suggests that managers may engage in accounting practices that increase reported income in order to benefit themselves, even if these practices do not accurately reflect the underlying economic reality of the business. Choosing a depreciation method that does not reflect the actual use of the asset is an example of such opportunistic behavior.

A Manager Electing to Adopt a Depreciation Method That Increases