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Under the debt hypothesis for accounting policy choice: Question 1Answer a. managers of entities with high leverage are likely to choose accounting policies that increase
Under the debt hypothesis for accounting policy choice: Question 1Answer a. managers of entities with high leverage are likely to choose accounting policies that increase profit and equity. b. managers act in their own interests and therefore prefer more remuneration. c. managers of entities with bonus plans prefer accounting policies that increase profit in the long-term. d. managers have no discretion in choosing accounting policies relating to debt
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