Question 1

Only a few examples of inductively derived theories are present in accounting literature.

Accepted Answer

A) True 
 B)False  False

Question 2

Critical accounting:

Accepted Answer

A)  Developed from two other areas of accounting, behavioral accounting and agency theory. 
B)  Is concerned with the economic rather than social role of accountants. 
C)  Presumes a sharp separation between the researcher and his or her field of investigation. 
D)  Views accounting as having a pivotal role in adjudicating conflicts between the corporation and constituencies such as labor, consumers, and the general public. 
A)  Developed from two other areas of accounting, behavioral accounting and agency theory. 
B)  Is concerned with the economic rather than social role of accountants. 
C)  Presumes a sharp separation between the researcher and his or her field of investigation. 
D)  Views accounting as having a pivotal role in adjudicating conflicts between the corporation and constituencies such as labor, consumers, and the general public. D

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A)  Much of this research uses laboratory subjects in carefully controlled experimental situations. 
B)  This approach seeks to understand what accounting information is selected for use and how it is processed. 
C)  This research has found that published financial statements are not often used for managerial decision-making purposes. 
D)  The question of how representative student subjects are to the broad population is a problem that pervades virtually all behavioral research that uses student subjects. 
A)  Much of this research uses laboratory subjects in carefully controlled experimental situations. 
B)  This approach seeks to understand what accounting information is selected for use and how it is processed. 
C)  This research has found that published financial statements are not often used for managerial decision-making purposes. 
D)  The question of how representative student subjects are to the broad population is a problem that pervades virtually all behavioral research that uses student subjects.

Question 5

Answer the following related to behavioral research:
a.What is the main concern of behavioral research?
b.How does behavioral research differ from the decision-model approach?
c.What are some of the findings of this research?

Accepted Answer

a.The main concern of behavioral researc

Question 6

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?)

Accepted Answer

Normative theories contain at least one

Question 7

The use of research in accounting results in the field being referred to as an academic discipline.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements regarding behavioral research is true?

Accepted Answer

A)  It is a normative approach. 
B)  The main concern of this type of research is how users of accounting information make decisions and what information they need. 
C)  Many studies have shown that there are no discrepancies between normative decision models and the actual decision process of users. 
D)  Since behavioral research is positive in approach, it is impossible to reach a conclusion regarding whether or not the usage of accounting data for decision-making purposes could be improved upon. 
A)  It is a normative approach. 
B)  The main concern of this type of research is how users of accounting information make decisions and what information they need. 
C)  Many studies have shown that there are no discrepancies between normative decision models and the actual decision process of users. 
D)  Since behavioral research is positive in approach, it is impossible to reach a conclusion regarding whether or not the usage of accounting data for decision-making purposes could be improved upon.

Question 9

Because of the efficient-markets hypothesis, the impetus for increased disclosure with less concern for choice among accounting alternatives has grown stronger.

Accepted Answer

A) True 
 B)False

Question 10

Describe the decision-model approach to accounting research and identify the two major decisions embraced by this approach.

Accepted Answer

The decision-model approach to research

Question 11

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

Accepted Answer

A)  A premise underlying this research approach is that decision makers may need to be taught how to use information they are unfamiliar with. 
B)  This approach has become more important with the rise of empirical research in accounting. 
C)  Some advocates of newer approaches have declared that this approach is too scientific. 
D)  The decision-model approach does not parallel those of standard-setters because standard-setters must cope with the politics of the regulatory process. 
A)  A premise underlying this research approach is that decision makers may need to be taught how to use information they are unfamiliar with. 
B)  This approach has become more important with the rise of empirical research in accounting. 
C)  Some advocates of newer approaches have declared that this approach is too scientific. 
D)  The decision-model approach does not parallel those of standard-setters because standard-setters must cope with the politics of the regulatory process.

Question 12

Inductive research can be useful in the accounting policy-making process in which deductive reasoning helps to determine rules that are to be prescribed.

Accepted Answer

A) True 
 B)False

Question 13

In a scientific approach to accounting:

Accepted Answer

A)  A great deal of latitude is allowed in measurements. 
B)  There is a low degree of objectivity. 
C)  The intention is to provide information useful for either predictive or assessment purposes. 
D)  The straight-line method of depreciation would always be used. 
A)  A great deal of latitude is allowed in measurements. 
B)  There is a low degree of objectivity. 
C)  The intention is to provide information useful for either predictive or assessment purposes. 
D)  The straight-line method of depreciation would always be used.

Question 14

Empirical research that attempts to determine why particular accounting alternatives are selected by management is an example of:

Accepted Answer

A)  Normative research. 
B)  Deductive research. 
C)  Positive accounting research. 
D)  Analytical research. 
A)  Normative research. 
B)  Deductive research. 
C)  Positive accounting research. 
D)  Analytical research.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

An important segment of accounting theory is derived from the research process.

Accepted Answer

A) True 
 B)False

Question 17

Normative theories contain at least one premise stating how things should be.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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?

Accepted Answer

A)  Capital markets research 
B)  Behavioral research 
C)  Agency theory 
D)  Information economics 
A)  Capital markets research 
B)  Behavioral research 
C)  Agency theory 
D)  Information economics

Question 20

Information economics research is usually inductive in nature.

Accepted Answer

A) True 
 B)False

Only a few examples of inductively derived theories are present in accounting literature.

Critical accounting:

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

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

Answer the following related to behavioral research: a.What is the main concern of behavioral research? b.How does behavioral research differ from the decision-model approach? c.What are some of the findings of this research?

The use of research in accounting results in the field being referred to as an academic discipline.

Which of the following statements regarding behavioral research is true?

Because of the efficient-markets hypothesis, the impetus for increased disclosure with less concern for choice among accounting alternatives has grown stronger.

Describe the decision-model approach to accounting research and identify the two major decisions embraced by this approach.

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

Inductive research can be useful in the accounting policy-making process in which deductive reasoning helps to determine rules that are to be prescribed.

In a scientific approach to accounting:

Empirical research that attempts to determine why particular accounting alternatives are selected by management is an example of:

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

An important segment of accounting theory is derived from the research process.

Normative theories contain at least one premise stating how things should be.

Analytical/deductive research methods are commonly used in 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?

Information economics research is usually inductive in nature.

An Introduction to Accounting Theory

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

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

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 2: Accounting Theory and Accounting Research

Only a few examples of inductively derived theories are present in accounting literature.

Critical accounting:

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

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

Answer the following related to behavioral research: a.What is the main concern of behavioral research? b.How does behavioral research differ from the decision-model approach? c.What are some of the findings of this research?

The use of research in accounting results in the field being referred to as an academic discipline.

Which of the following statements regarding behavioral research is true?

Because of the efficient-markets hypothesis, the impetus for increased disclosure with less concern for choice among accounting alternatives has grown stronger.

Describe the decision-model approach to accounting research and identify the two major decisions embraced by this approach.

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

Inductive research can be useful in the accounting policy-making process in which deductive reasoning helps to determine rules that are to be prescribed.

In a scientific approach to accounting:

Empirical research that attempts to determine why particular accounting alternatives are selected by management is an example of:

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

An important segment of accounting theory is derived from the research process.

Normative theories contain at least one premise stating how things should be.

Analytical/deductive research methods are commonly used in 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?

Information economics research is usually inductive in nature.

An Introduction to Accounting Theory

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

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

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