The fact that the U.S. has a free enterprise system has all of the following consequences for accounting, except:
A) Companies try to keep certain information secret, for competitive reasons.
B) Reporting tends to be from the perspective of the workers, not the owners.
C) Companies are allowed to choose among different accounting methods, instead of having to all use the same methods.
D) Companies generally do not try to measure the social value of their operations.

Question

Quizplus · Accepted Answer

The free enterprise system does not dictate the perspective from which reporting should be done. Instead, reporting tends to be from the perspective of the owners, as they are ultimately responsible for the success of the company. The other options (A, C, and D) are all consequences of the free enterprise system. Companies may try to keep information secret to maintain a competitive advantage, they are allowed to choose among different accounting methods, and they generally focus on measuring financial rather than social value.

The Fact That the U