Question 1

The criticism of traditional historical cost accounting that is based on a Popperian approach to science is:

Accepted Answer

A) Accounting reports prepared using traditional historical cost accounting may have perfect syntax but little value in practice 
B) The existence of accounting doublethink 
C) Many of the propositions of historical cost accounting are not falsifiable 
D) All of the above 
A) Accounting reports prepared using traditional historical cost accounting may have perfect syntax but little value in practice 
B) The existence of accounting doublethink 
C) Many of the propositions of historical cost accounting are not falsifiable 
D) All of the above

Question 2

Briefly outline developments in auditing theory associated with i.the normative era,and,ii.the positive era.

Accepted Answer

The normative era of auditing theory, wh

Question 3

Mautz and Sharaf,in 1961,attempted to generalise the existing auditing literature and provide a comprehensive theory of auditing.

Accepted Answer

A) True 
 B)False

Question 4

The following research methods are used by naturalistic researchers,except:

Accepted Answer

A) Case studies 
B) Experience of events 
C) Syntactic model formulation 
D) Exploration by flexibility 
A) Case studies 
B) Experience of events 
C) Syntactic model formulation 
D) Exploration by flexibility

Question 5

Explain and discuss the criticisms of historical cost accounting for poor syntax and semantic deficiencies.In your discussion refer to counter arguments that have been raised in defence of these criticisms.

Accepted Answer

Historical cost accounting has been crit

Question 6

Which of these is not a criticism of the descriptive pragmatic approach to theory construction?

Accepted Answer

A) It does not allow for accounting techniques to be challenged 
B) Some of the users of accounting information may be illogical in their responses 
C) The focus is on the accountant's behaviour not on measuring the attributes of the firm 
D) There is no assessment of whether the accountant reports in the way he or she should 
A) It does not allow for accounting techniques to be challenged 
B) Some of the users of accounting information may be illogical in their responses 
C) The focus is on the accountant's behaviour not on measuring the attributes of the firm 
D) There is no assessment of whether the accountant reports in the way he or she should

Question 7

Under the naturalistic approach to research an appropriate research methodology is case studies.

Accepted Answer

A) True 
 B)False

Question 8

The statement concerning Mautz and Sharaf's work on auditing theory in the 1960's that is not correct is:

Accepted Answer

A) They attempted to provide a comprehensive theory of auditing 
B) They believed that in essence auditing was a practical exercise 
C) They developed eight postulates as a foundation for the theory of auditing 
D) The concepts they developed are embedded in current auditing standards 
A) They attempted to provide a comprehensive theory of auditing 
B) They believed that in essence auditing was a practical exercise 
C) They developed eight postulates as a foundation for the theory of auditing 
D) The concepts they developed are embedded in current auditing standards

Question 9

Results from naturalistic research may be more difficult to generalise compared to results from scientific research.

Accepted Answer

A) True 
 B)False

Question 10

The research question that is most unlikely to be tested using positive methodology is:

Accepted Answer

A) Which firms are more likely to use straight-line depreciation rather than diminishing-balance depreciation? 
B) How do changes in tax rules affect firm's leverage position? 
C) Are firms with more intangible assets more likely to repurchase their shares? 
D) Is the quantitative data derived from given sets of operations based on an overall accounting theory,useful to users of financial statements? 
A) Which firms are more likely to use straight-line depreciation rather than diminishing-balance depreciation? 
B) How do changes in tax rules affect firm's leverage position? 
C) Are firms with more intangible assets more likely to repurchase their shares? 
D) Is the quantitative data derived from given sets of operations based on an overall accounting theory,useful to users of financial statements?

Question 11

Recent experimental auditing research has found a negative link between the size of audit firms and the quality of audits performed,i.e.the larger the firm the poorer the audit.

Accepted Answer

A) True 
 B)False

Question 12

Which of these statements is a criticism levelled at syntactic and semantic accounting theories?

Accepted Answer

A) There will be a great number of accounting techniques which are different but still acceptable under general accounting principles of practice 
B) The assumptions underlying the theories were rarely subjected to empirical testing 
C) The theories developed are not prescriptive,that is they do not guide accounting practice 
D) It does include an analytical judgement of the quality of an accountant's actions 
A) There will be a great number of accounting techniques which are different but still acceptable under general accounting principles of practice 
B) The assumptions underlying the theories were rarely subjected to empirical testing 
C) The theories developed are not prescriptive,that is they do not guide accounting practice 
D) It does include an analytical judgement of the quality of an accountant's actions

Question 13

The main difference between normative and positive theories is that normative theories are descriptive whereas positive theories are prescriptive.

Accepted Answer

A) True 
 B)False

Question 14

A comparison of scientific and naturalistic research
 
Which word/phrase should be inserted in position 10 in the table above?

Accepted Answer

A) Exploration by flexibility 
B) Piecemeal advancement of knowledge 
C) Reality is objective and concrete 
D) Accounting is constructed reality 
A) Exploration by flexibility 
B) Piecemeal advancement of knowledge 
C) Reality is objective and concrete 
D) Accounting is constructed reality

Question 15

The naturalistic approach to theory development looks at specific situations to understand what is happening in that particular situation - generalisability is not an underlying concern.

Accepted Answer

A) True 
 B)False

Question 16

"The main difference between normative and positive (accounting)theories is that normative theories are prescriptive,whereas positive theories are descriptive,explanatory or predictive".J.Godfrey,et el,'Accounting Theory',7th Ed.p.29.
Explain and discuss the quotation.Include in your answer an opinion as to whether the two approaches are compatible or incompatible.

Accepted Answer

Normative accounting theories are focuse

The criticism of traditional historical cost accounting that is based on a Popperian approach to science is:

Briefly outline developments in auditing theory associated with i.the normative era,and,ii.the positive era.

Mautz and Sharaf,in 1961,attempted to generalise the existing auditing literature and provide a comprehensive theory of auditing.

The following research methods are used by naturalistic researchers,except:

Explain and discuss the criticisms of historical cost accounting for poor syntax and semantic deficiencies.In your discussion refer to counter arguments that have been raised in defence of these criticisms.

Which of these is not a criticism of the descriptive pragmatic approach to theory construction?

Under the naturalistic approach to research an appropriate research methodology is case studies.

The statement concerning Mautz and Sharaf's work on auditing theory in the 1960's that is not correct is:

Results from naturalistic research may be more difficult to generalise compared to results from scientific research.

The research question that is most unlikely to be tested using positive methodology is:

Recent experimental auditing research has found a negative link between the size of audit firms and the quality of audits performed,i.e.the larger the firm the poorer the audit.

Which of these statements is a criticism levelled at syntactic and semantic accounting theories?

The main difference between normative and positive theories is that normative theories are descriptive whereas positive theories are prescriptive.

A comparison of scientific and naturalistic research Which word/phrase should be inserted in position 10 in the table above?

The naturalistic approach to theory development looks at specific situations to understand what is happening in that particular situation - generalisability is not an underlying concern.

Introduction

Role of Theory in Accounting Regulation

Theory Underpinning Accounting Standards

Measurement

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 2: Accounting Theory Construction

The criticism of traditional historical cost accounting that is based on a Popperian approach to science is:

Briefly outline developments in auditing theory associated with i.the normative era,and,ii.the positive era.

Mautz and Sharaf,in 1961,attempted to generalise the existing auditing literature and provide a comprehensive theory of auditing.

The following research methods are used by naturalistic researchers,except:

Explain and discuss the criticisms of historical cost accounting for poor syntax and semantic deficiencies.In your discussion refer to counter arguments that have been raised in defence of these criticisms.

Which of these is not a criticism of the descriptive pragmatic approach to theory construction?

Under the naturalistic approach to research an appropriate research methodology is case studies.

The statement concerning Mautz and Sharaf's work on auditing theory in the 1960's that is not correct is:

Results from naturalistic research may be more difficult to generalise compared to results from scientific research.

The research question that is most unlikely to be tested using positive methodology is:

Recent experimental auditing research has found a negative link between the size of audit firms and the quality of audits performed,i.e.the larger the firm the poorer the audit.

Which of these statements is a criticism levelled at syntactic and semantic accounting theories?

The main difference between normative and positive theories is that normative theories are descriptive whereas positive theories are prescriptive.

A comparison of scientific and naturalistic research Which word/phrase should be inserted in position 10 in the table above?

The naturalistic approach to theory development looks at specific situations to understand what is happening in that particular situation - generalisability is not an underlying concern.

Introduction

Role of Theory in Accounting Regulation

Theory Underpinning Accounting Standards

Measurement

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