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In the context of the agency problem, which statement best describes the role of accounting? a) Accounting measures agency costs incurred by the firm. b)

In the context of the agency problem, which statement best describes the role of accounting?

a) Accounting measures agency costs incurred by the firm.

b) Accounting is a financial information service activity.

c) Accounting provides information for use by principals in monitoring the performance of agents

d). Accounting monitors goal congruence between principals and agents.

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