Not only does accounting summarize huge quantities of behavioral interactions, but accounting measurements can become the object of behavior. Accountants account for behavior and accounting measurements can be the objective of behavior. As long as accountants make assumptions about human behavior in accounting, they should reexamine their behavioral assumptions.

Required 

a) Discuss the relevance of behavior in accounting decision-making 

b) Discuss how behavioral accounting can influence the voluntary disclosure in the financial statement

c) Using a suitable example discuss the difference between mental accounting and overconfidence

Answer rating: 100% (QA)

a The Relevance of Behavior in Accounting DecisionMaking Behavior plays a crucial role in accounting decisionmaking as it affects how financial transactions are recorded reported and interpreted Here ... View the full answer