Question 1

The major problem with fiat measurement is that the scales can be measured in numerous ways.

Accepted Answer

A) True 
 B)False

Question 2

The set of data that would be measured on a nominal scale is:

Accepted Answer

A) The height of a group of school children 
B) Assets classified into current/non-current and tangible/intangible 
C) Investment opportunities classified into 'poor','average' or 'good' with respect to anticipated returns. 
D) The share prices of a group of companies 
A) The height of a group of school children 
B) Assets classified into current/non-current and tangible/intangible 
C) Investment opportunities classified into 'poor','average' or 'good' with respect to anticipated returns. 
D) The share prices of a group of companies

Question 3

Which of these is not an issue discussed under the FASB/IASB joint project on Financial Statement Presentation?

Accepted Answer

A) The income statement should include the effects of all changes in net assets and liabilities during the period,other than transactions with owners 
B) Entities should present a single statement of all recognised income and expense items as a component of a complete set of financial statements 
C) For debt and equity instruments held for sale,fair value must be used instead of historical cost 
D) Accounting information should be aimed at decision makers making economic decisions about the entity 
A) The income statement should include the effects of all changes in net assets and liabilities during the period,other than transactions with owners 
B) Entities should present a single statement of all recognised income and expense items as a component of a complete set of financial statements 
C) For debt and equity instruments held for sale,fair value must be used instead of historical cost 
D) Accounting information should be aimed at decision makers making economic decisions about the entity

Question 4

What is the main problem in determining accuracy in accounting?

Accepted Answer

A) The measurement is not reliable 
B) The measurement does not give precise results 
C) The true value of the measurement is not known 
D) There is no repetition of operations in the measurement 
A) The measurement is not reliable 
B) The measurement does not give precise results 
C) The true value of the measurement is not known 
D) There is no repetition of operations in the measurement

Question 5

When using an ordinal scale you can use all the fundamental arithmetical operations.

Accepted Answer

A) True 
 B)False

Question 6

Michael measures the varying depths of the seabed around the Australian coastline.These measurements are best described as:

Accepted Answer

A) Fundamental measurements 
B) Fiat measurements 
C) Derived measurements 
D) All of the above 
A) Fundamental measurements 
B) Fiat measurements 
C) Derived measurements 
D) All of the above

Question 7

Which of these is not a source of error in measurement?

Accepted Answer

A) The environment 
B) Risk and uncertainty 
C) An unclear attribute 
D) All are sources of error 
A) The environment 
B) Risk and uncertainty 
C) An unclear attribute 
D) All are sources of error

Question 8

'If all measurement except counting inherently involve errors then how can any statement that includes a measurement be regarded as RIGHT'.J.Godfrey,et el,'Accounting Theory',7th Ed.p.141
Discuss four sources of error in measurement giving an example related to accounting measurement for each of the four sources you have discussed.Briefly explain how,in overall terms,accountants deal with error in measurement.

Accepted Answer

Measurement in accounting is inherently

Question 9

The term 'validity' is often used by social sciences in preference to the term 'accuracy'.

Accepted Answer

A) True 
 B)False

Question 10

A researcher wishes to measure the success of accountants in using graphs to determine the liquidity of a firm,and compare this with their success when using tables.The researcher has decided to use accounting students in the research and has told the students that their performance in the experiment will form part of their assessment for the accounting course they are enrolled in.A limitation of the study is whether students are an adequate proxy for experienced accountants.Which of the following measurement errors may occur when the experiment is conducted?

Accepted Answer

A) Instrument error 
B) Environment error 
C) Attribute unclear error 
D) All of the above 
A) Instrument error 
B) Environment error 
C) Attribute unclear error 
D) All of the above

Question 11

The act of counting is the only measurement that does not necessarily involve errors.

Accepted Answer

A) True 
 B)False

Question 12

Under current international accounting standards,accounting profit determination is based on a principle that includes increases and decreases in the 'fair values' of assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 13

The statement that is describing the concept of reliability is:

Accepted Answer

A) The measurements are repeatable or reproducible and as a result demonstrate their consistency 
B) The agreement of the results among repeated use of the measurement operation as applied to a given property 
C) The proven consistency of an operation to produce satisfactory results 
D) All of the above describe the concept of reliability. 
A) The measurements are repeatable or reproducible and as a result demonstrate their consistency 
B) The agreement of the results among repeated use of the measurement operation as applied to a given property 
C) The proven consistency of an operation to produce satisfactory results 
D) All of the above describe the concept of reliability.

Question 14

Which statement is not true with respect to the interval scale?

Accepted Answer

A) It is less informative than the ratio scale 
B) The distance between the intervals on the scale is equal and known 
C) The zero point is arbitrarily established 
D) A unique origin exists where the distance from it for at least one object is known 
A) It is less informative than the ratio scale 
B) The distance between the intervals on the scale is equal and known 
C) The zero point is arbitrarily established 
D) A unique origin exists where the distance from it for at least one object is known

Question 15

Emma has collected data on the ages of students in a third year accounting course.The data has been group into the following age ranges:
0-18
19-24
24-30
31-35
35+
Which of these measurement scales would her data be measured on?

Accepted Answer

A) Nominal 
B) Ordinal 
C) Interval 
D) Ratio 
A) Nominal 
B) Ordinal 
C) Interval 
D) Ratio

Question 16

Sarah has collected data on the salaries of part-time third-year accounting students.Which of these measurement scales would her data be measured on?

Accepted Answer

A) Nominal 
B) Ordinal 
C) Interval 
D) Ratio 
A) Nominal 
B) Ordinal 
C) Interval 
D) Ratio

Question 17

Which of these arguments is not a criticism of historical cost valuation?

Accepted Answer

A) The historical cost allocation system is based on the matching principle 
B) The derived profit does not measure contemporary resource usage 
C) Valuation of firms based on outdated historical costs is not useful for economic decision-making 
D) B and C 
A) The historical cost allocation system is based on the matching principle 
B) The derived profit does not measure contemporary resource usage 
C) Valuation of firms based on outdated historical costs is not useful for economic decision-making 
D) B and C

Question 18

What type of measurement does the following description relate to?
'A measurement that depends on the measurement of two or more other quantities'

Accepted Answer

A) Fiat measurement 
B) Fundamental measurement 
C) Derived measurement 
D) All of the above 
A) Fiat measurement 
B) Fundamental measurement 
C) Derived measurement 
D) All of the above

The major problem with fiat measurement is that the scales can be measured in numerous ways.

The set of data that would be measured on a nominal scale is:

Which of these is not an issue discussed under the FASB/IASB joint project on Financial Statement Presentation?

What is the main problem in determining accuracy in accounting?

When using an ordinal scale you can use all the fundamental arithmetical operations.

Michael measures the varying depths of the seabed around the Australian coastline.These measurements are best described as:

Which of these is not a source of error in measurement?

The term 'validity' is often used by social sciences in preference to the term 'accuracy'.

The act of counting is the only measurement that does not necessarily involve errors.

Under current international accounting standards,accounting profit determination is based on a principle that includes increases and decreases in the 'fair values' of assets and liabilities.

The statement that is describing the concept of reliability is:

Which statement is not true with respect to the interval scale?

Emma has collected data on the ages of students in a third year accounting course.The data has been group into the following age ranges: 0-18 19-24 24-30 31-35 35+ Which of these measurement scales would her data be measured on?

Sarah has collected data on the salaries of part-time third-year accounting students.Which of these measurement scales would her data be measured on?

Which of these arguments is not a criticism of historical cost valuation?

What type of measurement does the following description relate to? 'A measurement that depends on the measurement of two or more other quantities'

Introduction

Accounting Theory Construction

Role of Theory in Accounting Regulation

Theory Underpinning Accounting Standards

Accounting Measurement Systems

Assets

Liabilities and Owners Equity

Revenue

Expenses

Positive Theory of Accounting Policy and Disclosure

Capital Market Research

Behavioural Research

Emerging Issues in Accounting and Auditing

Filters

Exam 5: Measurement

The major problem with fiat measurement is that the scales can be measured in numerous ways.

The set of data that would be measured on a nominal scale is:

Which of these is not an issue discussed under the FASB/IASB joint project on Financial Statement Presentation?

What is the main problem in determining accuracy in accounting?

When using an ordinal scale you can use all the fundamental arithmetical operations.

Michael measures the varying depths of the seabed around the Australian coastline.These measurements are best described as:

Which of these is not a source of error in measurement?

The term 'validity' is often used by social sciences in preference to the term 'accuracy'.

The act of counting is the only measurement that does not necessarily involve errors.

Under current international accounting standards,accounting profit determination is based on a principle that includes increases and decreases in the 'fair values' of assets and liabilities.

The statement that is describing the concept of reliability is:

Which statement is not true with respect to the interval scale?

Emma has collected data on the ages of students in a third year accounting course.The data has been group into the following age ranges: 0-18 19-24 24-30 31-35 35+ Which of these measurement scales would her data be measured on?

Sarah has collected data on the salaries of part-time third-year accounting students.Which of these measurement scales would her data be measured on?

Which of these arguments is not a criticism of historical cost valuation?

What type of measurement does the following description relate to? 'A measurement that depends on the measurement of two or more other quantities'

Introduction

Accounting Theory Construction

Role of Theory in Accounting Regulation

Theory Underpinning Accounting Standards

Accounting Measurement Systems

Assets

Liabilities and Owners Equity

Revenue

Expenses

Positive Theory of Accounting Policy and Disclosure

Capital Market Research

Behavioural Research

Emerging Issues in Accounting and Auditing

Filters