Exam 2: Accounting Theory and Accounting Research

Which of the following accounting research approaches arose as a result of the perceived separation of interests in the modern corporation between management and ownership interests?

One of the purposes of positive research is to satisfy information demand by managers, auditors, creditors, and standard setters.

Which of the following statements is $\underline{not}$ true regarding the efficient-markets hypothesis?

An argument against using students as subjects in behavioral research experiments is that they are not representative of the broad population of accounting information users.

Inductive approaches to accounting theory usually attempt to be descriptive.

Which of the following statements regarding behavioral research in accounting is not true?

Which one of the following statements is true regarding the decision-model approach to research?

Analytical/deductive research methods are commonly used in accounting research.

Positive accounting research attempts to explain behavioral relationships in accounting.

General deductive reasoning is extremely important in accounting theory and policy-making.

The scientific method refers to the formal procedures used to derive the laws and principles that govern scientific disciplines, such as physics and chemistry, and is therefore not used in the published research on accounting.

Information economics research is usually inductive in nature.

A premise stating that accounting reports should be based on historical costs would indicate a normative approach.

When the premises of a theory are constructed so that they can be tested by statistical inference, they are usually called:

Discuss the differences between each of the following: •Normative vs. descriptive theories •Inductive vs. deductive reasoning •Global vs. particularistic theories Also identify how these types of approaches relate to one another. (For example: is deductive research normative or descriptive; is it global or particularistic?)

Much of the accounting research in the behavioral area uses laboratory subjects in carefully controlled experimental situations.

Because accounting is not very much concerned with the human element, we can expect it to be more precise in its measurement and predictions than are the natural sciences.

Which of the following statements regarding behavioral research is true?

Which of the following statements is true?

The decision-model approach to accounting research seeks to determine what information users of accounting information want.