7. The accounting department of a company updated its estimate of the total bad debt reserve (contra asset to accounts receivable), which led to a large increase in the bad debt expenses for the period. In response to this, the CEO expressed outrage at the chief accounting, blamed GAAP for the company's net loss, and demanded that the accounting department reduce the current year expense. This scenario is an examples of which of the following concepts? a. Information asymmetry b. The expectations gap C. Adverse selection d. Political influence

The accounting department of a company updated its estimate of the total bad debt reserve (contra asset to acdounts receivable), which led to a large increase in the bad debt expenses for the period. In response to this, the CEO expressed outrage at the chief accounting, blamed GAAP for the company's net loss, and demanded that the accounting department reduce the current year expense. This scenario is an examples of which of the following concepts? a. Information asymmetry b. The expectations gap c. Adverse selection d. Political influence