Basing executive compensation on accounting earnings I. Is a popular practice in the United States
II. Is sharply criticized because of potential negative long-term effects
III. Leads to unbiased accounting practices
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Basing executive compensation on accounting earnings is popular in the U.S. but criticized for encouraging short-term focus over long-term health, potentially leading to biased accounting practices.

Basing Executive Compensation on Accounting Earnings I