Question 1

Which of the following is a characteristic of capture theory?

Accepted Answer

A)  In deciding on a particular regulation, regulators consider the impact on key voters and on election finances 
B)  The regulated subsequently try to control the regulator, to achieve their self-interest 
C)  The regulator is a neutral arbiter, and does not let its own interest impact on its rule-making process 
D)  None of the given options are correct 
A)  In deciding on a particular regulation, regulators consider the impact on key voters and on election finances 
B)  The regulated subsequently try to control the regulator, to achieve their self-interest 
C)  The regulator is a neutral arbiter, and does not let its own interest impact on its rule-making process 
D)  None of the given options are correct B

Question 2

Which of the following statements is not true for accountants in general?

Accepted Answer

A)  They should be objective and free from bias when performing their duties 
B)  The information they report should represent faithfully the underlying transactions and events 
C)  Adopt different accounting methods to suit their own needs, and the needs of the company 
D)  None of the given options are correct 
A)  They should be objective and free from bias when performing their duties 
B)  The information they report should represent faithfully the underlying transactions and events 
C)  Adopt different accounting methods to suit their own needs, and the needs of the company 
D)  None of the given options are correct C

Question 3

Which of the following is not a rationale for regulating financial accounting information?

Accepted Answer

A)  To protect users from fraudulent or misleading information 
B)  Market for information without regulation is inefficient, and may result in production of sub-optimal amount of information 
C)  To assist management with better information, and reports for use by management and parties within the organisation 
D)  To ensure equal access to information by all interested parties, including those that have limited power to demand it 
A)  To protect users from fraudulent or misleading information 
B)  Market for information without regulation is inefficient, and may result in production of sub-optimal amount of information 
C)  To assist management with better information, and reports for use by management and parties within the organisation 
D)  To ensure equal access to information by all interested parties, including those that have limited power to demand it C

Question 4

Which of the following is an example of a normative accounting theory,or research?

Accepted Answer

A)  Conceptual frameworks of accounting 
B)  Critical perspectives of accounting practice 
C)  True income theories 
D)  All of the given options are normative accounting theories 
A)  Conceptual frameworks of accounting 
B)  Critical perspectives of accounting practice 
C)  True income theories 
D)  All of the given options are normative accounting theories

Question 5

Advocates of which theory would argue that the government is best able to develop accounting standards because it has greater enforcement powers,and is more likely to be less responsive to pressures from interest groups?

Accepted Answer

A)  Capture theory 
B)  Private interest theory 
C)  Economic interest theory 
D)  Public interest theory 
A)  Capture theory 
B)  Private interest theory 
C)  Economic interest theory 
D)  Public interest theory

Question 6

Which of the following theories asserts that regulators are not initially put in place to protect the public interest,and are driven by self-interest?

Accepted Answer

A)  Private interest theory 
B)  Public interest theory 
C)  Capture theory 
D)  All of the given options are correct 
A)  Private interest theory 
B)  Public interest theory 
C)  Capture theory 
D)  All of the given options are correct

Question 7

Which of the following expectations is not in line with statements by standards-setters that they consider the economic and social consequences of standards on affected parties when setting accounting standards?

Accepted Answer

A)  Accounting standards should be neutral and free from bias 
B)  Accounting standards should represent faithfully the underlying transactions 
C)  Accounting standards should consider the potential impact on others 
D)  None of the given options is correct 
A)  Accounting standards should be neutral and free from bias 
B)  Accounting standards should represent faithfully the underlying transactions 
C)  Accounting standards should consider the potential impact on others 
D)  None of the given options is correct

Question 8

Who has overall responsibility for issuing accounting standards in Australia?

Accepted Answer

A)  The Financial Reporting Council (FR
C)  
B)  The Australian Accounting Standards Boards (AAS
B)  
C)  The International Accounting Standards Board (IAS
B)  
D)  The Australian Accounting Research Foundation (AARF) 
A)  The Financial Reporting Council (FR
C)  
B)  The Australian Accounting Standards Boards (AAS
B)  
C)  The International Accounting Standards Board (IAS
B)  
D)  The Australian Accounting Research Foundation (AARF)

Question 9

Accounting theories should be

Accepted Answer

A)  Inductive 
B)  Deductive 
C)  Descriptive 
D)  None of the given options is correct 
A)  Inductive 
B)  Deductive 
C)  Descriptive 
D)  None of the given options is correct

Question 10

Which of the following is a reason why accounting,and accountants,can be considered very powerful?

Accepted Answer

A)  Emphasis on profitability measures provides support to profitable companies which may not be worthy of support under other measures 
B)  Provision of purported objective information provides users with a source of power to drive changes to a corporation's behaviour 
C)  The output of the accounting process impacts on many decisions which can result in transfers of funds, and therefore wealth 
D)  All of the given options are correct 
A)  Emphasis on profitability measures provides support to profitable companies which may not be worthy of support under other measures 
B)  Provision of purported objective information provides users with a source of power to drive changes to a corporation's behaviour 
C)  The output of the accounting process impacts on many decisions which can result in transfers of funds, and therefore wealth 
D)  All of the given options are correct

Question 11

What is the role of the accounting profession in the US with regards to stipulating accounting standards?

Accepted Answer

A)  Authority to develop and issue accounting standards 
B)  Delegated responsibility from the Securities and Exchange Commission, providing it performs such duties diligently 
C)  Indirect authority. Standards are issued by the Accounting Principles Board, a committee of the accounting professional bodies 
D)  No authority. Standards are issued by the Federal Accounting Standards Board, which is independent of the accounting profession 
A)  Authority to develop and issue accounting standards 
B)  Delegated responsibility from the Securities and Exchange Commission, providing it performs such duties diligently 
C)  Indirect authority. Standards are issued by the Accounting Principles Board, a committee of the accounting professional bodies 
D)  No authority. Standards are issued by the Federal Accounting Standards Board, which is independent of the accounting profession

Question 12

Which of the following arguments supports the view that regulation is not necessary,particularly to the extent that it currently exists?

Accepted Answer

A)  Accounting information is like any other good and people will be prepared to pay for it to the extent that it has use 
B)  Markets for information are not efficient and therefore produce a sub optimum amount of information, given the problem of "free riders" 
C)  Investors need protection from fraudulent organisations that may produce misleading information 
D)  Information asymmetry exists because not everyone has the same power over resources to obtain the information they need 
A)  Accounting information is like any other good and people will be prepared to pay for it to the extent that it has use 
B)  Markets for information are not efficient and therefore produce a sub optimum amount of information, given the problem of "free riders" 
C)  Investors need protection from fraudulent organisations that may produce misleading information 
D)  Information asymmetry exists because not everyone has the same power over resources to obtain the information they need

Question 13

Which of the following statements is true about accounting measurements such as profits and assets?

Accepted Answer

A)  They are subject to professional judgment 
B)  They would not vary if prepared by different accountants, providing they were based on the same set of accounting standards 
C)  They are based on hard, objective, evidence 
D)  All of the given options are correct 
A)  They are subject to professional judgment 
B)  They would not vary if prepared by different accountants, providing they were based on the same set of accounting standards 
C)  They are based on hard, objective, evidence 
D)  All of the given options are correct

Question 14

Which of the following statements is true about management accounting,compared with financial accounting?

Accepted Answer

A)  Management accounting provides financial reports to external parties that require information to meet their decision needs 
B)  Management accounting is largely unregulated 
C)  Management accounting attempts to protect the information rights and needs of all users 
D)  Management accounting adopts a pro-regulation perspective 
A)  Management accounting provides financial reports to external parties that require information to meet their decision needs 
B)  Management accounting is largely unregulated 
C)  Management accounting attempts to protect the information rights and needs of all users 
D)  Management accounting adopts a pro-regulation perspective

Question 15

Which of the following statements is true about early codification of accounting rules?

Accepted Answer

A)  In the early part of the twentieth century, there was limited work undertaken to codify particular accounting principles or rules 
B)  Accountants used rules which they were aware, and which they believed, were most appropriate to the particular circumstances 
C)  There was very limited uniformity between the accounting methods adopted by different organisations, thereby creating comparability problems. 
D)  All of the given options are correct 
A)  In the early part of the twentieth century, there was limited work undertaken to codify particular accounting principles or rules 
B)  Accountants used rules which they were aware, and which they believed, were most appropriate to the particular circumstances 
C)  There was very limited uniformity between the accounting methods adopted by different organisations, thereby creating comparability problems. 
D)  All of the given options are correct

Question 16

Which of the following statements is true about the regulation of accounting practice in its early period of development?

Accepted Answer

A)  Accounting was largely determined by accounting theory 
B)  Accounting was largely determined by accounting standards issued by the accounting profession 
C)  Accounting was largely determined by the national Securities and Exchange Commissions and resulting legislation 
D)  Accounting was largely determined by generally-accepted practice 
A)  Accounting was largely determined by accounting theory 
B)  Accounting was largely determined by accounting standards issued by the accounting profession 
C)  Accounting was largely determined by the national Securities and Exchange Commissions and resulting legislation 
D)  Accounting was largely determined by generally-accepted practice

Question 17

What theoretical perspective suggests that where firms are able to choose accounting methods,they will choose those that provide the result desired by the preparers?

Accepted Answer

A)  Efficiency perspective 
B)  Objectivity perspective 
C)  Stakeholder perspective 
D)  Opportunistic perspective 
A)  Efficiency perspective 
B)  Objectivity perspective 
C)  Stakeholder perspective 
D)  Opportunistic perspective

Question 18

What is the minimum level of accounting knowledge that readers of financial statements are assumed to possess,according to most professional accounting bodies around the world?

Accepted Answer

A)  None 
B)  Some level of knowledge sufficient to understand the financial reports properly 
C)  A sound working knowledge 
D)  Expert level of knowledge 
A)  None 
B)  Some level of knowledge sufficient to understand the financial reports properly 
C)  A sound working knowledge 
D)  Expert level of knowledge

Question 19

Financial accounting leads to the generation of:

Accepted Answer

A)  Reports to meet the specific information needs of users 
B)  Monthly financial reports for management 
C)  Special purpose financial reports 
D)  General purpose financial reports 
A)  Reports to meet the specific information needs of users 
B)  Monthly financial reports for management 
C)  Special purpose financial reports 
D)  General purpose financial reports

Question 20

What theoretical perspective suggests that where firms are able to choose accounting methods,they will choose those that best reflect their economic performance?

Accepted Answer

A)  Opportunistic perspective 
B)  Efficiency perspective 
C)  Creative accounting perspective 
D)  Economic interest perspective 
A)  Opportunistic perspective 
B)  Efficiency perspective 
C)  Creative accounting perspective 
D)  Economic interest perspective

Which of the following is a characteristic of capture theory?

Which of the following statements is not true for accountants in general?

Which of the following is not a rationale for regulating financial accounting information?

Which of the following is an example of a normative accounting theory,or research?

Advocates of which theory would argue that the government is best able to develop accounting standards because it has greater enforcement powers,and is more likely to be less responsive to pressures from interest groups?

Which of the following theories asserts that regulators are not initially put in place to protect the public interest,and are driven by self-interest?

Which of the following expectations is not in line with statements by standards-setters that they consider the economic and social consequences of standards on affected parties when setting accounting standards?

Who has overall responsibility for issuing accounting standards in Australia?

Accounting theories should be

Which of the following is a reason why accounting,and accountants,can be considered very powerful?

What is the role of the accounting profession in the US with regards to stipulating accounting standards?

Which of the following arguments supports the view that regulation is not necessary,particularly to the extent that it currently exists?

Which of the following statements is true about accounting measurements such as profits and assets?

Which of the following statements is true about management accounting,compared with financial accounting?

Which of the following statements is true about early codification of accounting rules?

Which of the following statements is true about the regulation of accounting practice in its early period of development?

What theoretical perspective suggests that where firms are able to choose accounting methods,they will choose those that provide the result desired by the preparers?

What is the minimum level of accounting knowledge that readers of financial statements are assumed to possess,according to most professional accounting bodies around the world?

Financial accounting leads to the generation of:

What theoretical perspective suggests that where firms are able to choose accounting methods,they will choose those that best reflect their economic performance?

Introduction to Financial Accounting Theory

The Regulation of Financial Accounting

International Accounting

Normative Theories of Accountingthe Case of Accounting for Changing Prices

Normative Theories of Accountingthe Case of Conceptual Framework Projects

Positive Accounting Theory

Unregulated Corporate Reporting Decisions: Considerations of Systems-Oriented Theories

Extended Systems of Accountingthe Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research

Critical Perspectives of Accounting

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Exam 2: The Financial Reporting Environment

Which of the following is a characteristic of capture theory?

Which of the following statements is not true for accountants in general?

Which of the following is not a rationale for regulating financial accounting information?

Which of the following is an example of a normative accounting theory,or research?

Advocates of which theory would argue that the government is best able to develop accounting standards because it has greater enforcement powers,and is more likely to be less responsive to pressures from interest groups?

Which of the following theories asserts that regulators are not initially put in place to protect the public interest,and are driven by self-interest?

Which of the following expectations is not in line with statements by standards-setters that they consider the economic and social consequences of standards on affected parties when setting accounting standards?

Who has overall responsibility for issuing accounting standards in Australia?

Accounting theories should be

Which of the following is a reason why accounting,and accountants,can be considered very powerful?

What is the role of the accounting profession in the US with regards to stipulating accounting standards?

Which of the following arguments supports the view that regulation is not necessary,particularly to the extent that it currently exists?

Which of the following statements is true about accounting measurements such as profits and assets?

Which of the following statements is true about management accounting,compared with financial accounting?

Which of the following statements is true about early codification of accounting rules?

Which of the following statements is true about the regulation of accounting practice in its early period of development?

What theoretical perspective suggests that where firms are able to choose accounting methods,they will choose those that provide the result desired by the preparers?

What is the minimum level of accounting knowledge that readers of financial statements are assumed to possess,according to most professional accounting bodies around the world?

Financial accounting leads to the generation of:

What theoretical perspective suggests that where firms are able to choose accounting methods,they will choose those that best reflect their economic performance?

Introduction to Financial Accounting Theory

The Regulation of Financial Accounting

International Accounting

Normative Theories of Accountingthe Case of Accounting for Changing Prices

Normative Theories of Accountingthe Case of Conceptual Framework Projects

Positive Accounting Theory

Unregulated Corporate Reporting Decisions: Considerations of Systems-Oriented Theories

Extended Systems of Accountingthe Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research

Critical Perspectives of Accounting

Filters