The critical approach to accounting is necessary primarily because:
A)various levels of authorization are desirable to enhance separation of duties.
B)management compensation would be even more excessive without it.
C)revenue Canada requires it.
D)a company's stakeholders and management have differing information needs and interests.

Question

Quizplus · Accepted Answer

The critical approach to accounting is necessary primarily because a company's stakeholders and management have differing information needs and interests. Accounting information is used by various stakeholders such as investors, creditors, regulators, employees, and customers. Each of these stakeholders has different interests and expectations from the accounting information. Therefore, a critical approach to accounting is necessary to ensure that accounting information is relevant, reliable, and unbiased for all stakeholders.

The Critical Approach to Accounting Is Necessary Primarily Because