Accounting Research Test
Questions
Course Introduction
Accounting Research is an advanced course that explores the methodologies, frameworks, and contemporary topics guiding academic and professional inquiry in accounting. Students learn how to formulate research questions, conduct literature reviews, and apply both qualitative and quantitative research methods. The course delves into issues such as financial reporting, auditing, corporate governance, and ethics, emphasizing the development and evaluation of research designs and the interpretation of empirical findings. Through critical analysis of academic articles and hands-on research projects, students gain the skills needed to contribute to the body of accounting knowledge and inform practice and policy.
Recommended Textbook
Financial Accounting Theory 3rd Edition by Craig Deegan
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12 Chapters
300 Verified Questions
300 Flashcards
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Page 2
Chapter 1: Introduction to Financial Accounting Theory
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24 Verified Questions
24 Flashcards
Source URL: https://quizplus.com/quiz/55756
Sample Questions
Q1) Theories and models in the social sciences differ from theories in the pure sciences because:
A) Theories about human behaviour cannot be expected to apply all the time, like some natural science theories
B) A number of theories may be available to describe, or provide a different perspective on, a particular phenomenon
C) Not all theories in social science have predictions that can be tested
D) All of the given options are correct
Answer: D
Q2) Which of the following is not assumed in Positive Accounting Theory?
A) Individuals (including managers) are economically rational in their behaviour
B) Individuals (including managers) are primarily motivated by self-interest
C) The natural objective of managers is to maximise the wealth of the firm
D) Managers are not indifferent in selecting accounting methods to use
Answer: C
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3
Chapter 2: The Financial Reporting Environment
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24 Verified Questions
24 Flashcards
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Sample Questions
Q1) Accounting theories should be
A) Inductive
B) Deductive
C) Descriptive
D) None of the given options is correct
Answer: D
Q2) Which of the following expectations is not in line with statements by standards-setters that they consider the economic and social consequences of standards on affected parties when setting accounting standards?
A) Accounting standards should be neutral and free from bias
B) Accounting standards should represent faithfully the underlying transactions
C) Accounting standards should consider the potential impact on others
D) None of the given options is correct
Answer: A
Q3) Who has overall responsibility for issuing accounting standards in Australia?
A) The Financial Reporting Council (FRC)
B) The Australian Accounting Standards Boards (AASB)
C) The International Accounting Standards Board (IASB)
D) The Australian Accounting Research Foundation (AARF)
Answer: B
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Chapter 3: The Regulation of Financial Accounting
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) Which of the following is a valid criticism of the economics-based rationality argument that asserts that credible information will be supplied in the absence of regulation,by aligning management's self-interest with that of the owners and lenders,thereby reducing the cost of capital?
A) The arguments do not follow logically
B) The arguments do not have historical support
C) The assumptions of management self-interest is too pessimistic
D) The argument has no empirical support
Answer: C
Q2) It is argued by the pro-regulation supporters that accounting information is a free or public good.What is the characteristic of a free or public good?
A) It is a good or service provided at no cost to anyone
B) It is a good or service whose over-production is an example of market failure
C) It is a good or service that, once available, people can obtain or use without paying
D) All of the given options are correct
Answer: C
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Chapter 4: International Accounting
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) What is the cause of differences between the reporting results by the same company,in two different countries,for the same set of transactions and period?
A) Different underlying economic systems
B) Different accounting and reporting standards
C) Different accounting policy choice
D) All of the given options are correct
Q2) Which of the following is not true for the International Accounting standards and the International Financial Reporting Standards?
A) They are based on the legalistic approach
B) They provide choices in recognition and measurement of various accounting transactions
C) They incorporate 'uncertainty expressions' (such as 'probable', 'significant influence', 'control' and 'substantial')
D) They are based on the concept of presenting 'true and fair view' of a company's financial reports, where the professional accountants are given the right to use their judgment to accomplish this goal
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Chapter 5: Normative Theories of Accountingthe Case of
Accounting for Changing Prices
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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.What would be the realised holding gain on the inventory that was sold?
A) $7 000 [100 x ($160 - $90)]
B) $4 000 [100 x ($130 - $90)]
C) $3 000 [100 x ($120 - $90)]
D) $500 [50 x ($130 - $120)]
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 Accountingthe Case of Conceptual Framework Projects
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28 Flashcards
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Sample Questions
Q1) What is the purpose of developing a conceptual framework?
A) To provide a coherent structure to accounting practice, which had developed in an ad hoc way
B) To guide standard-setters to develop standards based on the same concepts and principles, rather than in a piece-meal approach
C) To guide users where there is no accounting standard covering an issue
D) All of the given options are correct
Q2) Which of the following is a characteristic of reliability?
A) It influences economic decisions
B) It represents faithfully what it purports to represent
C) It provides predictive value and feedback to confirm or correct earlier expectations
D) None of the given options are correct
Q3) Which of the following was particularly concerned with addressing the rights of the community,in terms of access to financial information about entities?
A) Accounting Principles Board (APB) Statement No 4
B) The Trueblood Report
C) The UK Corporate Report
D) The FASB Conceptual Framework Project
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Chapter 7: Positive Accounting Theory
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) A manager electing to adopt a depreciation method that increases income,but does not reflect the actual use of the asset,is consistent with:
A) The efficiency perspective of Positive Accounting Theory
B) The opportunistic perspective of Positive Accounting Theory
C) Both the opportunity and the efficiency perspectives of Positive Accounting Theory
D) Neither the opportunity nor the efficiency perspectives of Positive Accounting Theory
Q2) To test whether accounting information is useful,researchers such as Ball and Brown tested whether share prices responded to:
A) Expected earnings announcements
B) Forecast earnings announcements
C) Unexpected earnings announcements
D) All of the given options are correct
Q3) Which of the following parties desire the firm to take the most risks?
A) Managers
B) Debtholders
C) Owners
D) All parties desire the firm to take the same level of risk
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Chapter 8: Unregulated Corporate Reporting Decisions:
Considerations of Systems-Oriented Theories
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24 Flashcards
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Sample Questions
Q1) Based on a joint consideration of Media Agenda Setting Theory and Legitimacy Theory,which of the following statements are correct?
A) According to Legitimacy Theory management uses the annual report as a tool to legitimise the ongoing operations of the organisation, and according to Media Agenda Setting Theory the media are able to influence community perceptions about issues such as the environment
B) Community concerns with the environmental performance of a specific firm in an industry will also impact on the disclosure strategies of firms across that industry
C) We should find a relationship between the extent of disclosure of social and environmental issues within the annual report and the media attention given to those issues
D) All of the given options are correct
Q2) The idea of the 'social contract' is that corporations only exist because they benefit:
A) Shareholders
B) Governments
C) Managers
D) Society
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Chapter 9: Extended Systems of Accountingthe
Incorporation of Social and Environmental Factors Within External Reporting
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Sample Questions
Q1) The main contribution of frameworks such as the Global Reporting Initiative is that they enable:
A) Comparison of social and environmental performance between companies
B) Aggregation of social and environmental performance to a single 'sustainability' number
C) Improved social and environmental performance
D) None of the given options is correct
Q2) The Global Reporting Initiative Guidelines are:
A) A mandatory framework containing a list of organisational financial, social and environmental performance indicators
B) A mandatory framework containing a list of governmental financial, social and environmental performance indicators
C) A voluntary framework containing a list of organisational financial, social and environmental performance indicators
D) A voluntary framework containing a list of governmental financial, social and environmental performance indicators
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Chapter 10: Reactions of Capital Markets to Financial Reporting
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25 Flashcards
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Sample Questions
Q1) 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
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) Earnings are relevant to investors because:
A) Investors want to maximise their profits
B) Past earnings predict future earnings
C) Past earnings predict future cashflows
D) Future cash flows are a function of future earnings
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Chapter 11: Reactions of Individuals to Financial Reporting:
An Examination of Behavioural Research
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24 Verified Questions
24 Flashcards
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Sample Questions
Q1) Some of the issues that have been considered in behavioural research include assessing the impact of:
A) The presentation of cues
B) The perceived rewards of cues
C) The scaling of cues
D) All of the given options are correct
Q2) Which of the following statements is true about the Lens model?
A) Cues may be either independent or interrelated
B) Cues may be inter-related but not independent
C) Cues may be independent but not inter-related
D) None of the given options is correct
Q3) Limitations of protocol analysis do not include difficulties with
A) Ensuring that verbal protocols are complete
B) Ensuring that verbal protocols match cognitive processes
C) Developing theory from verbal protocols
D) Coding verbal protocols
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13
Chapter 12: Critical Perspectives of Accounting
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Sample Questions
Q1) Which of the following statements is true,when comparing the research undertaken by critical theorists with the work undertaken by other accounting researchers?
A) Most accounting researchers tend to accept current social systems as 'given', unlike critical theorists that question whether current systems of accounting systematically favour certain classes in society at the expense of others
B) Critical theorists do not tend to debate which methods of accounting should be employed, rather they reconsider the structures of society in terms of whether the structures are equitable
C) Critical theorists view accounting as a social practice within political struggles and not merely a market practice guided by equilibrium in an efficient market
D) All of the given options are correct
Q2) Critical researchers suggest that accounting reports may legitimise the capitalist system by:
A) Providing a legitimate account of the activities of a corporation
B) Assisting investors to allocate capital
C) Highlighting the role of the State in requiring accounting disclosures
D) Helping to resolve problems caused by the inherent instability of capitalism
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