Question 1

Recognition and Matching are examples of:

Accepted Answer

A) input-oriented principles. 
B) output-oriented principles. 
C) constraining principles. 
D) both a and c. 
A) input-oriented principles. 
B) output-oriented principles. 
C) constraining principles. 
D) both a and c.

Question 2

There are eight broad principles in ARS 3.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following theories assumes that the owners and the firm are virtually identical?

Accepted Answer

A) Residual equity theory 
B) Proprietary theory 
C) Entity theory 
D) Commander theory 
A) Residual equity theory 
B) Proprietary theory 
C) Entity theory 
D) Commander theory

Question 4

A principle contains elements observable by empirical techniques.

Accepted Answer

A) True 
 B)False

Question 5

Preferred stockholders are residual equity holders.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following are defined in the text as general approaches utilized in the recognition and measurement of accounting events?

Accepted Answer

A) Concepts 
B) Principles 
C) Postulates 
D) Axioms 
A) Concepts 
B) Principles 
C) Postulates 
D) Axioms

Question 7

Distinguish between proprietary theory and entity theory. Include descriptions of the balance sheet equation used by each and how income is computed.

Accepted Answer

Proprietary theory assumes that the owne

Question 8

Which of the following postulates is violated when liquidation values for assets and equities are reported under ordinary circumstances?

Accepted Answer

A) Entities 
B) Time period 
C) Consistency 
D) Going concern 
A) Entities 
B) Time period 
C) Consistency 
D) Going concern

Question 9

What is the going-concern postulate of ARS 1, and how has it been criticized?

Accepted Answer

The going-concern postulate states that

Question 10

Distinguish between a postulate and a principle as they are used in ARS 1 and ARS 3. Identify the major categories of each that are included in these two studies.

Accepted Answer

Postulates are basic assumptions concern

Question 11

The time period idea is somewhat artificial because it creates definite segments out of what is a continuing process.

Accepted Answer

A) True 
 B)False

Question 12

Principles are basic assumptions concerning the business environment.

Accepted Answer

A) True 
 B)False

Question 13

When we view the business entity in the context of accounting, as well as in its legal form, it is clear that:

Accepted Answer

A) the entity is separate from its owners. 
B) the entity is identical to its owners. 
C) the pooling method should be used for business combinations. 
D) entities should be considered as one unit as a result of one controlling the other(s). 
A) the entity is separate from its owners. 
B) the entity is identical to its owners. 
C) the pooling method should be used for business combinations. 
D) entities should be considered as one unit as a result of one controlling the other(s).

Question 14

Which of the following is $\underline{not}$ a criticism that has been aimed at ARS 1?

Accepted Answer

A) Some postulates appear to stem from one of the other postulate categories. 
B) Self-evident postulates may not be sufficiently substantive to lead to a unique and meaningful set of accounting principles. 
C) The postulates are necessary but not sufficient to lead to a viable outcome. 
D) Postulates should have played a less passive role. 
A) Some postulates appear to stem from one of the other postulate categories. 
B) Self-evident postulates may not be sufficiently substantive to lead to a unique and meaningful set of accounting principles. 
C) The postulates are necessary but not sufficient to lead to a viable outcome. 
D) Postulates should have played a less passive role.

Question 15

Accounting concepts have largely evolved from practical operating necessities, including income tax laws.

Accepted Answer

A) True 
 B)False

Question 16

Distinguish between input-oriented principles and output-oriented principles and list at least three principles in each category.

Accepted Answer

Input-oriented principles are concerned

Question 17

Which type of accounting principle is concerned with the comparability of financial statements of different firms?

Accepted Answer

A) Input-oriented principles 
B) Output-oriented principles 
C) Constraining principles 
D) Both a and c 
A) Input-oriented principles 
B) Output-oriented principles 
C) Constraining principles 
D) Both a and c

Question 18

Proprietary theory assumes that the owners and the firm are virtually identical.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following concepts focuses on preparers of financial information?

Accepted Answer

A) Comparability 
B) Consistency 
C) Uniformity 
D) Both b and c 
A) Comparability 
B) Consistency 
C) Uniformity 
D) Both b and c

Question 20

Which of the following is an accurate overall label for the terms postulates and principles?

Accepted Answer

A) Constraints 
B) Concepts 
C) Axioms 
D) Conventions 
A) Constraints 
B) Concepts 
C) Axioms 
D) Conventions

Recognition and Matching are examples of:

There are eight broad principles in ARS 3.

Which of the following theories assumes that the owners and the firm are virtually identical?

A principle contains elements observable by empirical techniques.

Preferred stockholders are residual equity holders.

Which of the following are defined in the text as general approaches utilized in the recognition and measurement of accounting events?

Distinguish between proprietary theory and entity theory. Include descriptions of the balance sheet equation used by each and how income is computed.

Which of the following postulates is violated when liquidation values for assets and equities are reported under ordinary circumstances?

What is the going-concern postulate of ARS 1, and how has it been criticized?

Distinguish between a postulate and a principle as they are used in ARS 1 and ARS 3. Identify the major categories of each that are included in these two studies.

The time period idea is somewhat artificial because it creates definite segments out of what is a continuing process.

Principles are basic assumptions concerning the business environment.

When we view the business entity in the context of accounting, as well as in its legal form, it is clear that:

Which of the following is $\underline{not}$ a criticism that has been aimed at ARS 1?

Accounting concepts have largely evolved from practical operating necessities, including income tax laws.

Distinguish between input-oriented principles and output-oriented principles and list at least three principles in each category.

Which type of accounting principle is concerned with the comparability of financial statements of different firms?

Proprietary theory assumes that the owners and the firm are virtually identical.

Which of the following concepts focuses on preparers of financial information?

Which of the following is an accurate overall label for the terms postulates and principles?

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

The Search for Objectives

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 5: Postulates, Principles, and Concepts

Recognition and Matching are examples of:

There are eight broad principles in ARS 3.

Which of the following theories assumes that the owners and the firm are virtually identical?

A principle contains elements observable by empirical techniques.

Preferred stockholders are residual equity holders.

Which of the following are defined in the text as general approaches utilized in the recognition and measurement of accounting events?

Distinguish between proprietary theory and entity theory. Include descriptions of the balance sheet equation used by each and how income is computed.

Which of the following postulates is violated when liquidation values for assets and equities are reported under ordinary circumstances?

What is the going-concern postulate of ARS 1, and how has it been criticized?

Distinguish between a postulate and a principle as they are used in ARS 1 and ARS 3. Identify the major categories of each that are included in these two studies.

The time period idea is somewhat artificial because it creates definite segments out of what is a continuing process.

Principles are basic assumptions concerning the business environment.

When we view the business entity in the context of accounting, as well as in its legal form, it is clear that:

Which of the following is not‾\underline{not}not​ a criticism that has been aimed at ARS 1?

Accounting concepts have largely evolved from practical operating necessities, including income tax laws.

Distinguish between input-oriented principles and output-oriented principles and list at least three principles in each category.

Which type of accounting principle is concerned with the comparability of financial statements of different firms?

Proprietary theory assumes that the owners and the firm are virtually identical.

Which of the following concepts focuses on preparers of financial information?

Which of the following is an accurate overall label for the terms postulates and principles?

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

The Search for Objectives

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

Which of the following is $\underline{not}$ a criticism that has been aimed at ARS 1?