Gray argues that national cultural values affect accounting values. If Country X ranks low on uncertainty avoidance, which of the following statements would be true?

Question

Quizplus · Accepted Answer

According to Gray's theory, a low rank on uncertainty avoidance indicates a greater tolerance for risks and ambiguity in the culture. Therefore, the accounting values associated with conservatism (such as a preference for lower risk and a more cautious approach to financial reporting) would be less important in such a culture, resulting in a low rank for conservatism.

Gray Argues That National Cultural Values Affect Accounting Values