Historically, which of the following has not been a factor leading toward more conservatism in accounting principles?
A) The influence of creditors and bankers interested in ensuring their loans will be repaid
B) The reaction of the SEC to perceived accounting abuses in the 1920s
C) Corporate income taxes
D) The influence of CEOs who have been given stock options

Question

Quizplus · Accepted Answer

The influence of CEOs who have been given stock options has not historically been a factor leading toward more conservatism in accounting principles. Instead, CEOs with stock options might prefer more aggressive accounting to increase stock prices, contrasting with the conservative approach favored by creditors, regulators, and tax considerations.

Historically, Which of the Following Has Not Been a Factor