The mutuality of interests concept related to information disclosure implies that
A) disclosure may help users be more aware of common interests, improving cooperation.
B) increased disclosure increases uncertainty about financial performance.
C) user benefits always exceed costs.
D) it is difficult to measure the costs and benefits of disclosure.

Question

Quizplus · Accepted Answer

The mutuality of interests concept suggests that disclosure can be beneficial for both parties by making them aware of their common interests and promoting cooperation. This can ultimately improve the overall financial performance and decision-making of the parties involved. Therefore, option A is the most appropriate choice. Options B and C are incorrect as they do not accurately reflect the mutuality of interests concept. Option D is true but does not directly relate to the concept of mutuality of interests.

The Mutuality of Interests Concept Related to Information Disclosure Implies