Question 1

Several important committee reports gave rise to objectives and standards in place of the postulates and principles approach.

Accepted Answer

A) True 
 B)False

Question 2

"A Statement of Basic Accounting Theory" (ASOBAT) assumed that the evaluative framework of standards and guidelines was dependent upon the objectives of accounting.

Accepted Answer

A) True 
 B)False

Question 3

The decision usefulness approach is one of the classical approaches to accounting theory mentioned in SATTA.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not true regarding SATTA?

Accepted Answer

A) It attempted to develop metatheoretical guidelines for the evaluation of accounting information and valuation systems. 
B) It took into account the many valuation systems of accounting as well as other theoretical considerations. 
C) It enumerated the reasons why it was impossible to develop criteria that would enable the profession to unequivocally accept a single valuation system for accounting. 
D) It was commissioned by the AAA. 
A) It attempted to develop metatheoretical guidelines for the evaluation of accounting information and valuation systems. 
B) It took into account the many valuation systems of accounting as well as other theoretical considerations. 
C) It enumerated the reasons why it was impossible to develop criteria that would enable the profession to unequivocally accept a single valuation system for accounting. 
D) It was commissioned by the AAA.

Question 5

Accounting information is determined by supply and demand.

Accepted Answer

A) True 
 B)False

Question 6

For which of the following areas is broad information applicable to many user groups?

Accepted Answer

A) Predictive ability 
B) Accountability 
C) Both a and b 
D) None of the above 
A) Predictive ability 
B) Accountability 
C) Both a and b 
D) None of the above

Question 7

The purpose of ASOBAT was to refine the objectives of financial statements as a part of a metatheoretical structure.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following documents was the first to address the issue of user objectives extensively?

Accepted Answer

A) "Objectives of Financial Statements" (Trueblood Committee Report) 
B) "Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises" (APB Statement 4) 
C) "A Statement of Basic Accounting Theory" (ASOBAT) 
D) "Statement of Accounting Theory and Theory Acceptance" (SATT
A)  
A) "Objectives of Financial Statements" (Trueblood Committee Report) 
B) "Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises" (APB Statement 4) 
C) "A Statement of Basic Accounting Theory" (ASOBAT) 
D) "Statement of Accounting Theory and Theory Acceptance" (SATT
A)

Question 9

Moonitz felt that APB Statement 4 should have been issued as an opinion rather than as a statement because departures from GAAP made in a statement did not have to be disclosed.

Accepted Answer

A) True 
 B)False

Question 10

Measurements based on the accountability objective would include earnings per share but not return on investment.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following documents first stated that users of financial statements should be knowledgeable and should understand the characteristics and limitations of financial statements?

Accepted Answer

A) "Objectives of Financial Statements" (Trueblood Committee Report) 
B) "Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises" (APB Statement 4) 
C) "A Statement of Basic Accounting Theory" (ASOBAT) 
D) "Statement of Accounting Theory and Theory Acceptance" (SATT
A)  
A) "Objectives of Financial Statements" (Trueblood Committee Report) 
B) "Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises" (APB Statement 4) 
C) "A Statement of Basic Accounting Theory" (ASOBAT) 
D) "Statement of Accounting Theory and Theory Acceptance" (SATT
A)

Question 12

Which of the following was not a goal of ASOBAT?

Accepted Answer

A) To identify the field of accounting so that useful generalizations about it could be made and a theory developed 
B) To establish standards by which accounting information might be judged 
C) To point out possible improvements in accounting practice 
D) To emphasize the creative skill and ability of the accountant, whose presentation should be accepted by those who do not have his or her qualifications and credentials 
A) To identify the field of accounting so that useful generalizations about it could be made and a theory developed 
B) To establish standards by which accounting information might be judged 
C) To point out possible improvements in accounting practice 
D) To emphasize the creative skill and ability of the accountant, whose presentation should be accepted by those who do not have his or her qualifications and credentials

Question 13

Which of the following bodies did not publish one of the important committee reports and documents that lead to accounting objectives and standards?

Accepted Answer

A) AAA 
B) AICPA 
C) APB 
D) CAP 
A) AAA 
B) AICPA 
C) APB 
D) CAP

Question 14

The overriding message of SATTA is that current cost should be accepted as the dominate valuation system.

Accepted Answer

A) True 
 B)False

Question 15

According to APB Statement 4, basic accounting terminology is defined by whatever is being done in practice.

Accepted Answer

A) True 
 B)False

Question 16

APB Statement 4 was in agreement with ASOBAT that financial statements should be oriented toward a limited group of users.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is not true regarding the Trueblood Committee Report?

Accepted Answer

A) It emphasizes the importance of cash flows to users. 
B) It emphasizes the relation of earning-power measurements to the generation of future cash flows. 
C) Its earning-power orientation to income is grounded in the notion that in computing economic income, future cash flows should not be discounted to present value. 
D) Its objectives represented an important step taken toward establishing a meaningful conceptual framework of objectives. 
A) It emphasizes the importance of cash flows to users. 
B) It emphasizes the relation of earning-power measurements to the generation of future cash flows. 
C) Its earning-power orientation to income is grounded in the notion that in computing economic income, future cash flows should not be discounted to present value. 
D) Its objectives represented an important step taken toward establishing a meaningful conceptual framework of objectives.

Question 18

Which of the following statements is true regarding the Trueblood Committee Report?

Accepted Answer

A) It expresses the belief that different valuation bases are appropriate for different assets and liabilities. 
B) It is concerned with guaranteeing additivity of asset and liability amounts. 
C) It expresses the belief that the same valuation base should be used for all assets and all liabilities. 
D) Both b and c. 
A) It expresses the belief that different valuation bases are appropriate for different assets and liabilities. 
B) It is concerned with guaranteeing additivity of asset and liability amounts. 
C) It expresses the belief that the same valuation base should be used for all assets and all liabilities. 
D) Both b and c.

Question 19

Which of the following documents was the first to be based on an orientation toward user relevance?

Accepted Answer

A) "Objectives of Financial Statements" (Trueblood Committee Report) 
B) "Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises" (APB Statement 4) 
C) "A Statement of Basic Accounting Theory" (ASOBAT) 
D) "Statement of Accounting Theory and Theory Acceptance" (SATT
A)  
A) "Objectives of Financial Statements" (Trueblood Committee Report) 
B) "Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises" (APB Statement 4) 
C) "A Statement of Basic Accounting Theory" (ASOBAT) 
D) "Statement of Accounting Theory and Theory Acceptance" (SATT
A)

Question 20

The first statement to address the issue of user objectives extensively was ASOBAT.

Accepted Answer

A) True 
 B)False

Several important committee reports gave rise to objectives and standards in place of the postulates and principles approach.

"A Statement of Basic Accounting Theory" (ASOBAT) assumed that the evaluative framework of standards and guidelines was dependent upon the objectives of accounting.

The decision usefulness approach is one of the classical approaches to accounting theory mentioned in SATTA.

Which of the following is not true regarding SATTA?

Accounting information is determined by supply and demand.

For which of the following areas is broad information applicable to many user groups?

The purpose of ASOBAT was to refine the objectives of financial statements as a part of a metatheoretical structure.

Which of the following documents was the first to address the issue of user objectives extensively?

Moonitz felt that APB Statement 4 should have been issued as an opinion rather than as a statement because departures from GAAP made in a statement did not have to be disclosed.

Measurements based on the accountability objective would include earnings per share but not return on investment.

Which of the following documents first stated that users of financial statements should be knowledgeable and should understand the characteristics and limitations of financial statements?

Which of the following was not a goal of ASOBAT?

Which of the following bodies did not publish one of the important committee reports and documents that lead to accounting objectives and standards?

The overriding message of SATTA is that current cost should be accepted as the dominate valuation system.

According to APB Statement 4, basic accounting terminology is defined by whatever is being done in practice.

APB Statement 4 was in agreement with ASOBAT that financial statements should be oriented toward a limited group of users.

Which of the following statements is not true regarding the Trueblood Committee Report?

Which of the following statements is true regarding the Trueblood Committee Report?

Which of the following documents was the first to be based on an orientation toward user relevance?

The first statement to address the issue of user objectives extensively was ASOBAT.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

The Fasbs Conceptual Framework

Usefulness of Accounting Information to Investors and Creditors

Uniformity and Disclosure: Some Policy-Making Directions

International Accounting

The Balance Sheet

The Income Statement

Statement of Cash Flows

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters

Exam 6: The Search for Objectives

Several important committee reports gave rise to objectives and standards in place of the postulates and principles approach.

"A Statement of Basic Accounting Theory" (ASOBAT) assumed that the evaluative framework of standards and guidelines was dependent upon the objectives of accounting.

The decision usefulness approach is one of the classical approaches to accounting theory mentioned in SATTA.

Which of the following is not true regarding SATTA?

Accounting information is determined by supply and demand.

For which of the following areas is broad information applicable to many user groups?

The purpose of ASOBAT was to refine the objectives of financial statements as a part of a metatheoretical structure.

Which of the following documents was the first to address the issue of user objectives extensively?

Moonitz felt that APB Statement 4 should have been issued as an opinion rather than as a statement because departures from GAAP made in a statement did not have to be disclosed.

Measurements based on the accountability objective would include earnings per share but not return on investment.

Which of the following documents first stated that users of financial statements should be knowledgeable and should understand the characteristics and limitations of financial statements?

Which of the following was not a goal of ASOBAT?

Which of the following bodies did not publish one of the important committee reports and documents that lead to accounting objectives and standards?

The overriding message of SATTA is that current cost should be accepted as the dominate valuation system.

According to APB Statement 4, basic accounting terminology is defined by whatever is being done in practice.

APB Statement 4 was in agreement with ASOBAT that financial statements should be oriented toward a limited group of users.

Which of the following statements is not true regarding the Trueblood Committee Report?

Which of the following statements is true regarding the Trueblood Committee Report?

Which of the following documents was the first to be based on an orientation toward user relevance?

The first statement to address the issue of user objectives extensively was ASOBAT.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

The Fasbs Conceptual Framework

Usefulness of Accounting Information to Investors and Creditors

Uniformity and Disclosure: Some Policy-Making Directions

International Accounting

The Balance Sheet

The Income Statement

Statement of Cash Flows

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters