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Question 1: Which of the following statement is true in case of political cost hypothesis of positive accounting theory?
Select one:
Option A. Neither large nor small firms are more likely to use accounting choices that reduce reported profits.
Option B. Small firms are more likely to use accounting choices that reduce reported profits.
Option C. Large firms are more likely to use accounting choices that reduce reported profits.
Option D. Both large and small firms are more likely to use accounting choices that reduce reported profits.
Financial Statement Analysis and Preparation
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