Question 1

According to stakeholder theory accounting information:

Accepted Answer

A) is usually misleading. 
B) is seen as largely advertising. 
C) is unimportant to most stakeholders. 
D) is an important way to communicate with stakeholders. 
A) is usually misleading. 
B) is seen as largely advertising. 
C) is unimportant to most stakeholders. 
D) is an important way to communicate with stakeholders. D

Question 2

Which of the following theories have been used to explain voluntary disclosure in the annual report?

Accepted Answer

A) Institutional Theory. 
B) Stakeholder Theory. 
C) Legitimacy Theory. 
D) All of the above. 
A) Institutional Theory. 
B) Stakeholder Theory. 
C) Legitimacy Theory. 
D) All of the above. D

Question 3

Theories in accounting can help us to understand the decisions of:

Accepted Answer

A) Financial information regulators. 
B) Financial information preparers. 
C) Financial information users. 
D) All of the above. 
A) Financial information regulators. 
B) Financial information preparers. 
C) Financial information users. 
D) All of the above. D

Question 4

Which of the following is NOT considered a stakeholder according to the managerial branch of stakeholder theory?

Accepted Answer

A) Customers. 
B) Communities. 
C) Competitors. 
D) None of the above,i.e.they are all considered stakeholders. 
A) Customers. 
B) Communities. 
C) Competitors. 
D) None of the above,i.e.they are all considered stakeholders.

Question 5

Which of the following is NOT one of the four ways an organisation can obtain or maintain organisational legitimacy according to Lindblom?

Accepted Answer

A) Change its behaviour. 
B) Change perceptions of society,without changing its own behaviour. 
C) Manipulate perceptions by deflecting attention from societal concerns. 
D) None of the above,i.e.they are all ways an organisation can obtain or maintain legitimacy. 
A) Change its behaviour. 
B) Change perceptions of society,without changing its own behaviour. 
C) Manipulate perceptions by deflecting attention from societal concerns. 
D) None of the above,i.e.they are all ways an organisation can obtain or maintain legitimacy.

Question 6

The central proposition of contingency theory is:

Accepted Answer

A) Organisational performance depends on the fit between organisational context and structure. 
B) Institutional norms drive organisational structure. 
C) Organisational performance is largely random and poorly understood. 
D) Organisations are simply a nexus of contractual agreements. 
A) Organisational performance depends on the fit between organisational context and structure. 
B) Institutional norms drive organisational structure. 
C) Organisational performance is largely random and poorly understood. 
D) Organisations are simply a nexus of contractual agreements.

Question 7

Key problems for owner-manager agency relationships are:

Accepted Answer

A) dividend retention. 
B) horizon problem. 
C) risk aversion. 
D) all of the above. 
A) dividend retention. 
B) horizon problem. 
C) risk aversion. 
D) all of the above.

Question 8

According to institutional theory which of the following statements is NOT true about corporate social and environmental disclosure:

Accepted Answer

A) Within industries the nature of the disclosure is likely to diverge over time. 
B) It will be heavily influenced by regulation. 
C) Well organised external stakeholders will lead to increased disclosure. 
D) None of the above,i.e.they are all true. 
A) Within industries the nature of the disclosure is likely to diverge over time. 
B) It will be heavily influenced by regulation. 
C) Well organised external stakeholders will lead to increased disclosure. 
D) None of the above,i.e.they are all true.

Question 9

A normative theory:

Accepted Answer

A) Is based on what should be the case given a certain objective. 
B) Is completely divorced from reality. 
C) Describes,explains or predicts activities. 
D) Only focuses on normal activities. 
A) Is based on what should be the case given a certain objective. 
B) Is completely divorced from reality. 
C) Describes,explains or predicts activities. 
D) Only focuses on normal activities.

Question 10

Legitimacy theory argues that disclosure practice.

Accepted Answer

A) The business of business is business. 
B) Organisations can only continue to exist if they demonstrate values consistent with society at large. 
C) Organisations should focus on wealth maximisation for their owners. 
D) Consumers are only interested in minimising costs to themselves. 
A) The business of business is business. 
B) Organisations can only continue to exist if they demonstrate values consistent with society at large. 
C) Organisations should focus on wealth maximisation for their owners. 
D) Consumers are only interested in minimising costs to themselves.

Question 11

A positive theory:

Accepted Answer

A) Is based on what should be the case given a certain objective. 
B) Is completely divorced from reality. 
C) Describes,explains or predicts activities. 
D) Only focuses on rewarding activities. 
A) Is based on what should be the case given a certain objective. 
B) Is completely divorced from reality. 
C) Describes,explains or predicts activities. 
D) Only focuses on rewarding activities.

Question 12

Agency theory concentrates on:

Accepted Answer

A) two agency relationships. 
B) multiple agency relationships. 
C) one agency relationship. 
D) three agency relationships. 
A) two agency relationships. 
B) multiple agency relationships. 
C) one agency relationship. 
D) three agency relationships.

Question 13

Accounting theory helps us understand accounting better as:

Accepted Answer

A) A random process. 
B) A fundamental part of the natural universe. 
C) A human endeavour. 
D) A representation of truth. 
A) A random process. 
B) A fundamental part of the natural universe. 
C) A human endeavour. 
D) A representation of truth.

Question 14

Agency theory would hold that managers on compensation contracts which have bonuses tied to a current measure of performance would prefer to:

Accepted Answer

A) Smooth income using either expensing or capitalising. 
B) Be indifferent to expensing or capitalising transactions. 
C) Expense transactions rather than capitalise them. 
D) Capitalise transactions rather than expense them. 
A) Smooth income using either expensing or capitalising. 
B) Be indifferent to expensing or capitalising transactions. 
C) Expense transactions rather than capitalise them. 
D) Capitalise transactions rather than expense them.

Question 15

Stakeholder theory:

Accepted Answer

A) Has both a normative and positive version. 
B) Is completely different to legitimacy theory. 
C) Focuses on government power. 
D) All of the above. 
A) Has both a normative and positive version. 
B) Is completely different to legitimacy theory. 
C) Focuses on government power. 
D) All of the above.

Question 16

Contingency theory proposes that:

Accepted Answer

A) Shareholder needs drive accounting system choices. 
B) Accounting policies are likely to be consistent within industries. 
C) Size is not an important factor when considering management accounting systems. 
D) No universally consistent accounting system can apply to all organisations. 
A) Shareholder needs drive accounting system choices. 
B) Accounting policies are likely to be consistent within industries. 
C) Size is not an important factor when considering management accounting systems. 
D) No universally consistent accounting system can apply to all organisations.

Question 17

A key underlying assumption of Institutional Theory is that people are:

Accepted Answer

A) Risk-adverse. 
B) Self-interested. 
C) Likely to conform to external norms. 
D) All of the above. 
A) Risk-adverse. 
B) Self-interested. 
C) Likely to conform to external norms. 
D) All of the above.

According to stakeholder theory accounting information:

Which of the following theories have been used to explain voluntary disclosure in the annual report?

Theories in accounting can help us to understand the decisions of:

Which of the following is NOT considered a stakeholder according to the managerial branch of stakeholder theory?

Which of the following is NOT one of the four ways an organisation can obtain or maintain organisational legitimacy according to Lindblom?

The central proposition of contingency theory is:

Key problems for owner-manager agency relationships are:

According to institutional theory which of the following statements is NOT true about corporate social and environmental disclosure:

A normative theory:

Legitimacy theory argues that disclosure practice.

A positive theory:

Agency theory concentrates on:

Accounting theory helps us understand accounting better as:

Agency theory would hold that managers on compensation contracts which have bonuses tied to a current measure of performance would prefer to:

Stakeholder theory:

Contingency theory proposes that:

A key underlying assumption of Institutional Theory is that people are:

Contemporary Issues in Accounting

The Conceptual Framework for Financial Reporting

Standard Setting

Measurement

Products of the Financial Reporting Process

Corporate Governance

Capital Markets Research and Accounting

Earnings Management

Fair Value Accounting

Sustainability and Environmental Accounting

International Accounting

Filters

Exam 5: Theories in Accounting

According to stakeholder theory accounting information:

Which of the following theories have been used to explain voluntary disclosure in the annual report?

Theories in accounting can help us to understand the decisions of:

Which of the following is NOT considered a stakeholder according to the managerial branch of stakeholder theory?

Which of the following is NOT one of the four ways an organisation can obtain or maintain organisational legitimacy according to Lindblom?

The central proposition of contingency theory is:

Key problems for owner-manager agency relationships are:

According to institutional theory which of the following statements is NOT true about corporate social and environmental disclosure:

A normative theory:

Legitimacy theory argues that disclosure practice.

A positive theory:

Agency theory concentrates on:

Accounting theory helps us understand accounting better as:

Agency theory would hold that managers on compensation contracts which have bonuses tied to a current measure of performance would prefer to:

Stakeholder theory:

Contingency theory proposes that:

A key underlying assumption of Institutional Theory is that people are:

Contemporary Issues in Accounting

The Conceptual Framework for Financial Reporting

Standard Setting

Measurement

Products of the Financial Reporting Process

Corporate Governance

Capital Markets Research and Accounting

Earnings Management

Fair Value Accounting

Sustainability and Environmental Accounting

International Accounting

Filters