Accounting and Society Exam Bank
Course Introduction
Accounting and Society explores the pivotal role that accounting plays in shaping and influencing social, economic, and political environments. The course examines how accounting practices impact decision-making processes within organizations, government, and communities, and analyses the ethical considerations and societal consequences of financial reporting. Students will investigate the influence of regulatory frameworks, the professions role in corporate governance, and the relationship between accounting information and issues such as sustainability, social responsibility, and transparency. Through case studies and critical analysis, the course aims to develop an understanding of accounting as both a technical discipline and a social practice with far-reaching implications for society as a whole.
Recommended Textbook
Financial Accounting Theory 4th Edition by Craig Deegan
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12 Chapters
359 Verified Questions
359 Flashcards
Source URL: https://quizplus.com/study-set/2769
Page 2
Chapter 1: Introduction to Financial Accounting Theory
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/55205
Sample Questions
Q1) Which of the following is true about theories in general?
A) Theories can include any coherent set of ideas or statements to explain, or provide guidance in respect of, certain phenomena.
B) Theories must be empirically based to describe what is, rather than what should be.
C) Theories must be based on inductive reasoning to provide a generalisation or prediction.
D) All of the given options are correct.
Answer: A
Q2) Which of the following is an example of a dominant paradigm in accounting prior to 1960?
A) Current cost accounting
B) Conceptual framework of accounting
C) Historical cost accounting
D) Continuously contemporary accounting
Answer: C
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3
Chapter 2: The Financial Reporting Environment
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) Which of the following is a reason why accounting,and accountants,can be considered very powerful?
A) The emphasis on profitability measures provides support to profitable companies which may not be worthy of support under other measures.
B) The provision of purported objective information provides users with a source of power to drive changes to a corporation's behaviour.
C) The output of the accounting process impacts on many decisions which can result in transfers of funds, and therefore wealth.
D) All of the given options are correct.
Answer: D
Q2) Accounting theories should be:
A) Inductive
B) Deductive
C) Descriptive
D) None of the given options is correct.
Answer: D
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Chapter 3: The Regulation of Financial Accounting
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Which of the following is a valid argument against regulatory capture?
A) The regulated are best equipped to address the technical issues.
B) The regulated are not independent from the regulator, and therefore lack neutrality and freedom from bias.
C) The regulated are better able to understand the issues and need for regulation in specific areas.
D) The regulation can be fast-tracked, because there is less time taken to argue the issues with other parties.
Answer: B
Q2) A pro-regulatory perspective would argue that accounting information will be provided.
A) Freely, to protect the public interest
B) According to the forces of demand and supply
C) To reduce the costs of capital
D) To reduce uncertainty about the firm
Answer: A
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Chapter 4: International Accounting
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33 Verified Questions
33 Flashcards
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Sample Questions
Q1) According to Gray (1988),the higher a country ranks in terms of uncertainty avoidance and power distance,and the lower it ranks in individualism,the more likely it is to rank highly in terms of:
A) Conservatism
B) Professionalism
C) Uniformity
D) Flexibility
Q2) According to Nobes (1998),many of the factors that have been suggested as reasons for differences in accounting methods in different countries are inter-related.He divided these into two broad categories.What is one of these broad categories?
A) Cultural factors
B) Religious influences
C) The political system in place
D) The tax system in place
Q3) From 2005,Australia has adopted the IASB standards for:
A) All the reporting entities
B) Multinational enterprises only
C) All the entities listed on the stock markets
D) All entities that prepare consolidated financial statements
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Page 6
Chapter 5: Measurement Issues: Accounting for the Effects of
Changing Prices and Market Conditions
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) Assume that an entity acquired 150 items of inventory at a cost of $90 each,and sold 100 of the items for $160 each when the replacement cost to the entity was $120 each.Also assume that the replacement cost of the 50 remaining items of inventory at year end was $130.Under the Edwards and Bell approach to current cost accounting,what portion of operating profit would be available for dividends?
A) $4 000 [100 x ($160 - $120)]
B) $1 000 [100 x ($130 - $120)]
C) $3 000 [100 x ($160 - $130)]
D) $1 500 [50 x ($160 - $130)]
Q2) If historical cost profits are all distributed in dividends during times of rising inventory prices,this will lead to (assuming other things being equal):
A) A reduction in financial capital
B) An erosion of operating capacity
C) No effect on capital
D) None of the given options is correct.
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Chapter 6: Normative Theories of Accounting: The Case of Conceptual Framework Projects
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32 Verified Questions
32 Flashcards
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Sample Questions
Q1) Which of the following is not a characteristic of an asset,according to the IASB Conceptual Framework?
A) There is an expected future economic benefit.
B) The entity must have ownership over the resource giving rise to the future economic benefits.
C) The transaction or event giving rise to the ownership over future economic benefits must have occurred.
D) The reporting entity must have control over the resource to benefit from it, or to deny or regulate the access of others to the benefit.
Q2) Which of the following is not a characteristic of a liability,according to the IASB Conceptual Framework?
A) A future deposition or transfer of economic benefits to others will occur.
B) A past transaction or event is to have created the obligation.
C) There must be a legal obligation.
D) None of the given options are correct.
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8
Chapter 7: Positive Accounting Theory
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30 Flashcards
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Sample Questions
Q1) Which of the following is the main advantage of using accounting earnings instead of share prices to determine bonuses?
A) Share prices are influenced by market forces that are outside the control of management.
B) Accounting information is independently audited.
C) Accounting information is unbiased.
D) Share prices may be manipulated by managers engaging in insider trading.
Q2) It is common practice for managers to be rewarded in a way that is tied to the profits of the firm,the sales of the firm,or the return on assets.That is,their remuneration is based on the output of the accounting system.Which of the following is a drawback for such bonus schemes?
A) Bonus schemes tied to the performance of the firm will be put in place to align the interests of the owners and the managers.
B) Rewarding managers on the basis of accounting profits may induce them to manipulate accounting numbers.
C) There would be limited incentives for the manager to adopt risky strategies that increase the value of the firm.
D) The manager may be reluctant to take on optimal levels of debt.
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Chapter 8: Unregulated Corporate Reporting Decisions:
Considerations of Systems-Oriented Theories
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29 Verified Questions
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Sample Questions
Q1) Which of the following hypotheses,proposed by DiMaggio and Powell (1983),do not relate to coercive or mimetic isomorphism?
A) The greater the dependence of an organisation on another organisation, the more similar it will become to that organisation in structure, climate and behavioural focus.
B) The greater the centralisation of organisation A's resource supply, the greater the extent to which organisation A will change isomorphically to resemble the organisations on which it depends for resources.
C) The greater the reliance on academic credentials in choosing managerial and staff personnel, the greater the extent to which an organisation will become like other organisations in its field.
D) The more ambiguous the goals of an organisation, the greater the extent to which the organisation will model itself after organisations that it perceives to be successful.
Q2) According to Legitimacy Theory,the annual report is:
A) A means to assist users in legitimately allocating scarce resources
B) A tool to legitimise the ongoing operations of the organisation
C) A legitimate account of the activities of the organisation for the period
D) All of the given options are correct.
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Chapter 9: Extending Corporate Accountability: The
Incorporation of Social and Environmental
Factors Within External Reporting
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29 Verified Questions
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Sample Questions
Q1) Including all affected stakeholders in a dialogue with the corporation may be difficult because:
A) There may be multiple stakeholder groups in diverse geographic regions
B) Stakeholders may be reluctant to express their honest views to the company for fear of reprisal
C) The stakeholders may not be aware of the corporation's activities
D) All of the given options are correct.
Q2) 'Enlightened self-interest' means that businesses:
A) Will sacrifice financial returns in order to improve social and environmental performance
B) Will not sacrifice financial returns in order to improve social and environmental performance
C) Do not believe there is a conflict between financial returns and social and environmental performance
D) None of the given options are correct.
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Chapter 10: Reactions of Capital Markets to Financial Reporting
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Sample Questions
Q1) The book value is generally less than the market value of a firm because:
A) Capital markets are not strong-form efficient
B) Certain intangibles may not meet the asset recognition criteria
C) Assets may be overvalued by unethical managers
D) The market values of assets are difficult to measure
Q2) Post-earnings announcement 'drift' is:
A) Consistent with the strong-form efficient markets hypothesis
B) Consistent with the semi-strong-form efficient markets hypothesis
C) The predictability of returns following earnings announcements
D) The predictability of abnormal returns following earnings announcements
Q3) Positive abnormal returns following an earnings announcement suggests the announcement contained:
A) Good news
B) Unexpected good news
C) Bad news
D) Unexpected bad news
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Chapter 11: Reactions of Individuals to Financial Reporting:
An Examination of Behavioural Research in Accounting
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29 Verified Questions
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Sample Questions
Q1) Which of the following is an issue that has to be considered at the input level of the Lens Model?
A) Characteristics of the person making the judgment
B) Scaling characteristics of individual cues
C) Qualities of the judgment
D) Characteristics of the decision rule
Q2) Which of the following statements is true when comparing behavioural research with capital markets research?
A) Both behavioural research and capital markets research assess the aggregate effect of financial reporting.
B) Both behavioural research and capital markets research analyse individual responses to financial reporting.
C) Behavioural research analyses individual responses to financial reporting, while capital markets research assesses the aggregate effect of financial reporting.
D) None of the given options are correct.
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Chapter 12: Critical Perspectives of Accounting
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Sample Questions
Q1) Which of the following is not true about the role of the State in supporting existing social structures?
A) Increasing the flow of information, or availability of specific types of information, is seen as a means of maintaining particular organisations and social structures.
B) Government does not operate in the public interest but in the interests of 'well off' groups.
C) Government will take action to enhance the legitimacy of the (unjust) social system.
D) None of the above options are correct.
Q2) Critical researchers accuse financial accounting of:
A) Being open to manipulation by self-interested managers
B) Reinforcing unequal distributions of wealth and power
C) Being irrelevant to management decision making
D) Giving inaccurate predictions of share price movements
Q3) Which theoretical perspectives have been utilised by critical researchers?
A) Marxism
B) Deep ecology
C) Radical feminism
D) All of the given options are correct.
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