According to Positive Accounting Theory,the existence of debt covenants:
A) Can be explained from an efficiency perspective, and gives management an incentive to manipulate accounting information from an opportunistic perspective
B) Can be explained from an opportunistic perspective, and gives management an incentive to manipulate accounting information from an efficiency perspective
C) Can be explained from both efficiency and opportunistic perspectives
D) Cannot be explained

Question

Quizplus · Accepted Answer

The Answer is A

According to Positive Accounting Theory,the Existence of Debt Covenants