Question 1

Accounting information is determined by supply and demand.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Which of the following is not one of the four objectives of accounting given by ASOBAT?

Accepted Answer

A)  To make decisions concerning the use of limited resources (including the identification of crucial decision areas) and to determine objectives and goals 
B)  To direct and control an organization's human and material resources effectively 
C)  To relate the evaluative framework of standards and guidelines to the objectives themselves 
D)  To facilitate social functions and controls 
A)  To make decisions concerning the use of limited resources (including the identification of crucial decision areas) and to determine objectives and goals 
B)  To direct and control an organization's human and material resources effectively 
C)  To relate the evaluative framework of standards and guidelines to the objectives themselves 
D)  To facilitate social functions and controls

Question 4

Relevance is considered the most important of the qualitative objectives of APB Statement 4.

Accepted Answer

A) True 
 B)False

Question 5

Respond to the following:
a.
What is the decision-usefulness approach to accounting theory?
b.
What are the characteristics and limitations of the decision-model approach?
c.
What are the characteristics of the decision-maker approach?

Accepted Answer

a.
The decision-usefulness approach is a

Question 6

The major objectives of financial statements are:

Accepted Answer

A)  Capital maintenance measurement and adaptability. 
B)  Accountability and adaptability. 
C)  Predictive ability and accountability. 
D)  Capital maintenance and predictive ability. 
A)  Capital maintenance measurement and adaptability. 
B)  Accountability and adaptability. 
C)  Predictive ability and accountability. 
D)  Capital maintenance and predictive ability.

Question 7

The postulates and principles approach was concerned with user objectives.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following set of standards is at the heart ASOBAT?

Accepted Answer

A)  Relevance, Verifiability, Objectivity, Usefulness 
B)  Relevance, Verifiability, Freedom from Bias, Quantifiability 
C)  Reliability, Verifiability, Freedom from Bias, Quantifiability 
D)  Relevance, Usefulness, Freedom from Bias, Objectivity 
A)  Relevance, Verifiability, Objectivity, Usefulness 
B)  Relevance, Verifiability, Freedom from Bias, Quantifiability 
C)  Reliability, Verifiability, Freedom from Bias, Quantifiability 
D)  Relevance, Usefulness, Freedom from Bias, Objectivity

Question 9

Which of the following standards is related to measurement theory?

Accepted Answer

A)  Quantifiability 
B)  Freedom from bias 
C)  Usefulness 
D)  Objectivity 
A)  Quantifiability 
B)  Freedom from bias 
C)  Usefulness 
D)  Objectivity

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

APB Statement 4 adopted a very strong emphasis on the diversity of users.

Accepted Answer

A) True 
 B)False

Question 14

ASOBAT emphasized which of the following in its definition of accounting?

Accepted Answer

A)  The creative ability of the accountant 
B)  The work and skill of the accountant 
C)  The needs of the users of accounting information 
D)  Recording transactions 
A)  The creative ability of the accountant 
B)  The work and skill of the accountant 
C)  The needs of the users of accounting information 
D)  Recording transactions

Question 15

List and define the four standards for evaluating accounting that are at the heart of ASOBAT.

Accepted Answer

The four standards at the heart of ASOBA

Question 16

Which of the following statements is true regarding accountability?

Accepted Answer

A)  Accountability refers to a narrower concept than does stewardship. 
B)  Measurements based on the accountability objective include earnings per share but not return on investment. 
C)  The question of which valuation system provides the best input for accountability-oriented measurement is unimportant. 
D)  Accountability refers to the responsibility of management to report on achieving goals for the effective and efficient utilization of enterprise resources. 
A)  Accountability refers to a narrower concept than does stewardship. 
B)  Measurements based on the accountability objective include earnings per share but not return on investment. 
C)  The question of which valuation system provides the best input for accountability-oriented measurement is unimportant. 
D)  Accountability refers to the responsibility of management to report on achieving goals for the effective and efficient utilization of enterprise resources.

Question 17

Which of the following documents defined accounting as a service activity whose function is "to provide quantitative information... that is intended to be useful in making economic decisions"?

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 18

Accountability refers to the responsibility of management to report on achieving goals for the effective and efficient utilization of enterprise resources.

Accepted Answer

A) True 
 B)False

Question 19

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 20

A problem brought up by SATTA is the diversity of users in terms of their decisions and their possible different information needs.

Accepted Answer

A) True 
 B)False

Accounting information is determined by supply and demand.

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

Which of the following is not one of the four objectives of accounting given by ASOBAT?

Relevance is considered the most important of the qualitative objectives of APB Statement 4.

Respond to the following: a. What is the decision-usefulness approach to accounting theory? b. What are the characteristics and limitations of the decision-model approach? c. What are the characteristics of the decision-maker approach?

The major objectives of financial statements are:

The postulates and principles approach was concerned with user objectives.

Which of the following set of standards is at the heart ASOBAT?

Which of the following standards is related to measurement theory?

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

Which of the following is not true regarding SATTA?

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

APB Statement 4 adopted a very strong emphasis on the diversity of users.

ASOBAT emphasized which of the following in its definition of accounting?

List and define the four standards for evaluating accounting that are at the heart of ASOBAT.

Which of the following statements is true regarding accountability?

Which of the following documents defined accounting as a service activity whose function is "to provide quantitative information... that is intended to be useful in making economic decisions"?

Accountability refers to the responsibility of management to report on achieving goals for the effective and efficient utilization of enterprise resources.

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

A problem brought up by SATTA is the diversity of users in terms of their decisions and their possible different information needs.

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

Statements of Cash Flows

Accounting for Inflation and Changing Prices

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters

Exam 6: The Search for Objectives

Accounting information is determined by supply and demand.

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

Which of the following is not one of the four objectives of accounting given by ASOBAT?

Relevance is considered the most important of the qualitative objectives of APB Statement 4.

Respond to the following: a. What is the decision-usefulness approach to accounting theory? b. What are the characteristics and limitations of the decision-model approach? c. What are the characteristics of the decision-maker approach?

The major objectives of financial statements are:

The postulates and principles approach was concerned with user objectives.

Which of the following set of standards is at the heart ASOBAT?

Which of the following standards is related to measurement theory?

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

Which of the following is not true regarding SATTA?

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

APB Statement 4 adopted a very strong emphasis on the diversity of users.

ASOBAT emphasized which of the following in its definition of accounting?

List and define the four standards for evaluating accounting that are at the heart of ASOBAT.

Which of the following statements is true regarding accountability?

Which of the following documents defined accounting as a service activity whose function is "to provide quantitative information... that is intended to be useful in making economic decisions"?

Accountability refers to the responsibility of management to report on achieving goals for the effective and efficient utilization of enterprise resources.

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

A problem brought up by SATTA is the diversity of users in terms of their decisions and their possible different information needs.

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

Statements of Cash Flows

Accounting for Inflation and Changing Prices

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters