Deck 2: The Pursuit of the Conceptual Framework

Question 1

Under Statement of Financial Accounting Concepts No.2,which of the following relates to both relevance and reliability?

A)Timeliness
B)Materiality
C)Verifiability
D)Neutrality

Answer 1

B

Question 2

Which of the following is not an approaches to accounting theory AS categorized by Statement on Accounting Theory and Theory Acceptance?

A)Classical,
B)Neoclassical
C)Decision usefulness
D)Information economics.

Answer 2

B

Question 3

Under Statement of Financial Accounting Concepts No.2,which of the following is an ingredient of the primary quality of reliability?

A)Understandability
B)Verifiability
C)Predictive value
D)Materiality

Answer 3

B

Question 4

Discuss the contribution DR Scott to the development of accounting theory.

Question 5

Under Statement of Financial Accounting Concepts No.2,which of the following interacts with both relevance and reliability to contribute to the usefulness of information?

A)Comparability
B)Timeliness
C)Neutrality
D)Predictive value

Question 6

Discuss accounting Research Study No.1.

Question 7

An item is considered material if

A)It doesn't costs a lot of money.
B)It is of a tangible good.
C)It is likely to influence the decision of an investor or creditor.
D)The cost of reporting the item is greater than its benefits

Question 8

Which of the following hierarchy of qualities did Statement of Financial Accounting Concepts No.2 indicate as being most important?

A)Relevance
B)Reliability
C)Verifiability
D)Decision usefulness

Question 9

Which of the following organizations published the monograph titled A Statement of Accounting Principles?

A)SEC
B)AAA
C)AIA
D)NAA

Question 10

Under Statement of Financial Accounting Concepts No.2,which of the following is an ingredient of the primary quality of relevance?

A)Predictive value
B)Materiality
C)Understandability
D)Verifiability

Question 11

Under Statement of Financial Accounting Concepts No.2,the ability through consensus of measures to ensure that information represents what it purports to represent is an example of the concept of

A)Relevance
B)Verifiability
C)Representational faithfulness
D)Feedback value

Question 12

Which of the following is not one of DR Scott's hierarchy of accounting postulates and principles?

A)Orientation postulate.
B)The principles of truth and fairness.
C)The materiality principle
D)The principles of adaptability and consistency.

Question 13

Which of the following is considered a pervasive constraint by Statement of Financial Accounting Concepts No.2

A)Benefits>costs
B)Conservatism
C)Timeliness
D)Verifiability

Question 14

Discuss the contributions of the works by Sanders Hatfield and More,and Paton and Littleton to accounting theory.

Question 15

Which of the following economists most influenced the views of DR Scott?

A)Thorstein Veblen
B)John Hicks
C)Karl Marx
D)John Smith

Question 16

Who was the author of Accounting Research Study No.1,The Basic Postulates of Accounting?

A)Robert Sprouse
B)Maurice Moonitz
C)Alvin Jennings\
D)Thomas Hatfield

Question 17

Which of the following organizations published the monograph titled A Tentative Statement of Accounting Principles Affecting Annual Corporate Reports

A)SEC
B)AAA
C)AIA
D)NAA

Question 18

Discuss the contributions of Paton and Canning to the development of accounting theory.

Question 19

Which early accounting theorist was among the first to express the view that all changes in the value of assets and liabilities should be reflected in the financial statements ?\

A)A.C.Littleton
B)John Canning
C)William Paton
D)DR Scott

Question 20

Which of the following is not a qualitative characteristic associated with reliability?

A)Verifiable
B)Conservatism
C)Neutral
D)Faithful representation

Question 21

How did ASOBAT define accounting and what two new ideas arose from this monograph?

Question 22

Discuss how the FASB and the IASC acted to improve comparability under the Norwalk Agreement.

Question 23

What two approaches to present value were discussed in SFAS No.7?

Question 24

What were the approaches to accounting theory identified by SATTA?

Question 25

Discuss the issue of principles based vs.rule based accounting standards.