Provide a two-or three-sentence response that argues for or against (indicate which) each of these statements:

1. Accounting is an exact science.

2. Managers choose accounting procedures that produce the most accurate picture of the company’s operating performance and financial condition.

3. U.S. accounting standards are influenced more by politics than by science or economics.

4. If the FASB and SEC were not around to require and enforce minimum levels of financial disclosure, most companies would provide little (if any) information to outsiders.

5. When managers possess good news about the company (that is, information that will in-crease the stock price), they have an incentive to disclose the information as soon as possible.

6. When managers possess bad news about the company (that is, information that will decrease the stock price), they have an incentive to delay disclosure as long as possible.

7. Managers who disclose only the minimum information required to meet FASB and SEC requirements may be doing a disservice to shareholders.