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accounting questions

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Question;1. Watts and Zimmerman's Positive Accounting Theory is:A. One of several normative theories of accountingB. One of several positive theories of accountingC. One of several critical theories of accountingD. None of the given options is correct2. The key theory that underpins Positive Accounting Theory is:A. The Efficient Markets HypothesisB. Agency theoryC. Normative ethical theoryD. None of the given options is correct3. The principal's expectation of opportunistic behaviour by his or her agent resultsin lower payments to:A. The agentB. The principalC. The principal and the agentD. Neither the principal nor the agent4. The 'political cost hypothesis' of Positive Accounting Theory suggests that:A. Large firms are more likely to use accounting choices that reduce reported profitsB. Small firms are more likely to use accounting choices that reduce reported profitsC. Neither large nor small firms are more likely to use accounting choices that reducereported profitsD. Both large and small firms are more likely to use accounting choices that reducereported profits5. The 'bonus plan hypothesis' of Positive Accounting Theory suggests managers offirms with bonus plans tied to reported income are more likely to use accountingmethods that:A. Increase prior period reported incomeB. Increase current period reported incomeC. Increase future period reported incomeD. None of the given options is correct6. The 'debt/equity hypothesis' of Positive Accounting Theory predicts that:A. The higher the firm's debt/equity ratio, the more likely managers are to useaccounting methods that lower incomeB. The lower the firm's debt/equity ratio, the more likely managers are to useaccounting methods that increase incomeC. The higher the firm's debt/equity ratio, the more likely managers are to useaccounting methods that increase incomeD. None of the given options is correct7. Critical researchers accuse financial accounting of:A. Being open to manipulation by self-interested managersB. Reinforcing unequal distributions of wealth and powerC. Being irrelevant to management decision-makingD. Poorly predicting stock prices8. ?Social Praxis? in the context of critical theory means thatA. Theory influences practiceB. Practice influences theoryC. Theory influences practice, while practice influences theoryD. Theory does not influence practice, and practice does not influence theory9. Critical accounting researchers have criticised other social andenvironmental accounting researchers for:A. Lacking objectivityB. Being too radical and unrealisticC. Leaving existing social structures unchallengedD. Ignoring the findings of empirical accounting research10. Which theoretical perspectives have been utilised by critical researchers?A. MarxismB. Deep ecologyC. Radical feminismD. All of the given options are correct11. Broadly speaking, critical researchers have been:A. Successful in identifying problems in accounting practices, but unsuccessful inchanging practicesB. Successful in exposing problems in accounting practices, and successful inchanging practicesC. Unsuccessful in exposing problems in accounting practices, but successful inchanging practicesD. Unsuccessful in exposing problems in accounting practices, and unsuccessful inchanging practices12. Critical researchers interpret the Australian accounting bodies' opposition tomandatory corporate social and environmental reporting as evidence that theaccounting profession:A. Is legitimately concerned with introducing unnecessary regulationB. Does not believe mandatory reporting would enhance corporate accountabilityC. Does not believe shareholders and the public support mandatory reportingD. Promotes the interests of business above the interests of other stakeholders13. Critical researchers believe that accountants are:A. Complicit in the exploitation of citizensB. Resistant to the exploitation of citizensC. Irrelevant to the exploitation of citizensD. Exploited by citizens14. Critical researchers believe that regulation of corporations is ineffectivebecause the government:A. Is weak and powerlessB. Is deceived by corporationsC. Favours the richD. Does not believe that more effective social and environmental legislation isrequired

 

Paper#45041 | Written in 18-Jul-2015

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