Exam 2: Accounting Theory and Accounting Research

An important difference between deductive and inductive research is that inductive research is sometimes global in content, whereas deductive research is usually particularistic.

Which of the following characteristics does not apply to the decision-model approach to research?

Because deductive research is grounded in real-world phenomena, it can realistically focus on only a small part of the relevant environment.

Which of the following examines or tests data, usually from a sample of a population, to make inferences about the population?

Critical accounting discourages active social roles for accountants.

Answer the following questions regarding agency theory: a.What are the assumptions, focus, and hypothesis of agency theory? b.How does opportunistic behavior, or moral hazard apply to agency theory? c.How does an audit of financial statements pertain to agency theory?

In which of the following research areas do researchers believe that there is not a sharp separation between the researcher and his or her field of investigation?

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

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.

Positive accounting research attempts to explain behavioral relationships in accounting.

Hypotheses are conclusions derived from the research process.

The basic set of premises in a theory are also sometimes called all of the following except:

To be useful, inductive research must be kept value-free.

Empirical research shows that prices of publicly traded securities react slowly and in an erratic manner to new information.

Are inductive and deductive research mutually exclusive methods? Give examples to support your answer.

Which of the following statements is not true?

Accounting research of two generations ago was purely normative.

Which of the following research areas hypothesizes that management attempts to maximize its own welfare by minimizing costs of monitoring and contracting?

Currently accepted alternative depreciation methods illustrate that accounting is closer to an art than a science.

The efficient-markets hypothesis states that the return of a security is based on its risk.