Why may accounting policies with no direct cash flow consequences indirectly affect investors or creditors?

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Accounting Theory Conceptual Issues in a Political and Economic Environment

ISBN: 978-1412991698

8th edition

Authors: Harry Wolk, James Dodd, John Rozycki

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Question Posted: Feb 12, 2016 06:17 AM

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Why may accounting policies with no direct cash flow consequences indirectly affect investors or creditors?

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The argument derives from the agency or contracting theory Existing contra...View the full answer

Accounting Theory Conceptual Issues in a Political and Economic Environment

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