Which of the following is not a rationale for regulating financial accounting information?
A) To protect users from fraudulent or misleading information.
B) A market for information without regulation is inefficient, and may result in the production of a sub-optimal amount of information.
C) To assist management with better information, and to provide reports for use by management and parties within the organisation.
D) To ensure equal access to information by all interested parties, including those that have limited power to demand it.

Question

Quizplus · Accepted Answer

The rationale for regulating financial accounting information is to protect users from fraudulent or misleading information, to ensure equal access to information by all interested parties, and to address market inefficiencies. However, assisting management with better information and providing reports for use by management and parties within the organisation is not a rationale for regulating financial accounting information as it focuses on internal management rather than external users.

Which of the Following Is Not a Rationale for Regulating