Question 1

The going-concern postulate states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a true statement?

Accepted Answer

A) A principle contains elements observable by empirical techniques. 
B) The APB's Special Committee on Research Program defined both postulates and broad principles. 
C) A principle is an analytical statement whose truth or falsity is self-contained by its internal logic. 
D) Postulates are generally defined as basic assumptions that cannot be verified. 
A) A principle contains elements observable by empirical techniques. 
B) The APB's Special Committee on Research Program defined both postulates and broad principles. 
C) A principle is an analytical statement whose truth or falsity is self-contained by its internal logic. 
D) Postulates are generally defined as basic assumptions that cannot be verified.

Question 3

The APB was the first to successfully derive an underlying framework of postulates and principles.

Accepted Answer

A) True 
 B)False

Question 4

The proprietary theory approach largely coincides with the components of income measurement as it is presently construed in historical cost-based systems.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following postulates states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely?

Accepted Answer

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

Question 6

Who are residual equity holders?

Accepted Answer

A) Preferred stockholders 
B) Managers 
C) Bondholders 
D) Common stockholders 
A) Preferred stockholders 
B) Managers 
C) Bondholders 
D) Common stockholders

Question 7

Which of the following is not a reason why ARS 1 and ARS 3 fell short of the goal of obtaining a framework for APB accounting opinions?

Accepted Answer

A) The authors refused to abandon historical cost. 
B) The postulates were not complete and therefore could not exclude all value systems other than the one prescribed in the principles. 
C) At least one of the principles was not derived from any of the postulates. 
D) The question of whether valuations of various assets were additive became an issue. 
A) The authors refused to abandon historical cost. 
B) The postulates were not complete and therefore could not exclude all value systems other than the one prescribed in the principles. 
C) At least one of the principles was not derived from any of the postulates. 
D) The question of whether valuations of various assets were additive became an issue.

The going-concern postulate states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely.

Which of the following is a true statement?

The APB was the first to successfully derive an underlying framework of postulates and principles.

The proprietary theory approach largely coincides with the components of income measurement as it is presently construed in historical cost-based systems.

Which of the following postulates states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely?

Who are residual equity holders?

Which of the following is not a reason why ARS 1 and ARS 3 fell short of the goal of obtaining a framework for APB accounting opinions?

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

The going-concern postulate states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely.

Which of the following is a true statement?

The APB was the first to successfully derive an underlying framework of postulates and principles.

The proprietary theory approach largely coincides with the components of income measurement as it is presently construed in historical cost-based systems.

Which of the following postulates states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely?

Who are residual equity holders?

Which of the following is not a reason why ARS 1 and ARS 3 fell short of the goal of obtaining a framework for APB accounting opinions?

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