What theoretical perspective suggests that where firms are able to choose accounting methods,they will choose those that best reflect their economic performance?
A) Opportunistic perspective
B) Efficiency perspective
C) Creative accounting perspective
D) Economic interest perspective

Question

Quizplus · Accepted Answer

The efficiency perspective suggests that firms will choose accounting methods that best reflect their economic performance as they seek to maximize efficiency and minimize costs. This perspective assumes that firms are rational and will act in their best interest to achieve economic efficiency. Therefore, the best answer would be B.

What Theoretical Perspective Suggests That Where Firms Are Able to Choose