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Explain the political cost hypothesis of Positive Accounting

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Q1. Explain the political cost hypothesis of Positive Accounting Theory (hint: you will need to define what a political cost is)?

Q2. Some people argue earnings management is always unethical. Using examples explain whether you agree or disagree with this statement (hint: be sure to explain what earnings management is in your answer)

Q3. Organisational legitimacy is often described as perceptual. What does this mean in relation to an organisation's actions? (hint: You will need to define what is meant by legitimacy in your answer).

Q4. Under current purchasing power accounting (CPPA), explain why holding monetary assets will lead to a purchasing power loss, but holding non-monetary assets not lead to a purchasing power loss. Include a basic example in your answer.

Reference no: EM132749703

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