Task: Provide a two or three sentence response that argues for or against (indicate which) each of these statements:
a. Accounting is an exact science
b. Mangers choose accounting procedures that produce the most accurate picture of the company's operating performance and financial condition.
c. Accounting standards in the United States are influenced more by politics then science or economics.
d. If the FASB and the SEC were not around to require and enforce minimum levels of financial disclosure, most companies would provide little (if any) information to outsiders.
e. When managers possess good news about the company (that is, information that will increase the stock price), they have an incentive to disclose the information as soon as possible.
f. When managers possess bad news about the company (that is, information that will decrease the stock price), they have an incentive to delay disclosure as long as possible.
g. An investor who uses fundamental analysis for investment decisions has little need for financial statement information.
h. An investor who believes that capital markets are efficient has little need for financial statement information.
i. Managers who disclose only the minimum information required to meet FASB and SEC requirements may be doing disservice to shareholders.
j. Financial statements are the only source of information analysts use when forecasting the company's future profitability and financial condition.