Accounting Theory
Question Bank
Course Introduction
Accounting Theory explores the fundamental principles, concepts, and frameworks that underpin the practice of accounting. This course examines the development and application of accounting standards, the role of accounting in decision-making and policy formulation, and the ethical and societal implications of accounting practices. Students will analyze contemporary issues, alternative approaches to financial reporting, and the impact of regulatory bodies on the accounting profession. Through theoretical perspectives and real-world examples, the course aims to foster critical thinking about the rationale behind accounting methods and the evolution of accounting as a discipline.
Recommended Textbook
Issues in Financial Accounting 16th Australia Edition by Scott Henderson
Available Study Resources on Quizplus
26 Chapters
712 Verified Questions
712 Flashcards
Source URL: https://quizplus.com/study-set/3599
Page 2
Chapter 1: Institutional Arrangements for Setting Accounting Standards in Australia
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/71466
Sample Questions
Q1) Under section 296 of the Corporations Act 2001,directors of companies that fail to comply with AASB accounting standards may be prosecuted by:
A) ASIC
B) AASB
C) ASX
D) FRP
Answer: A
Q2) Give an overview of the present institutional arrangements for standard setting in Australia.
Answer: In the private sector,the most important legislation specifying financial reporting requirements isthe Corporations Act 2001,which replaced the Corporations Act 1989.This legislation may be foundat <www.legislation.gov.au>.The Corporate Law Economic Reform Program (CLERP)wascommenced in 1998 as part of the Commonwealth Government's ongoing program to modernisebusiness regulation in Australia.As part of this program,the Corporations Act was simplifiedthrough substantial amendments made in 1998,some of which affected financial reporting.Section292 of the Corporations Act requires the preparation of financial statements for each financialyear by all disclosing entities,all public companies,all large proprietary companies and allregistered schemes
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Conceptual Framework: Purpose, reporting
Entity, the Objective of Financial Reporting, and Qualitative
Characteristics
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/71465
Sample Questions
Q1) The elements of financial statements,as outlined in the conceptual framework,are:
A) assets, liabilities, equity, income, expenses
B) balance sheet, income statement, cash flow statement
C) materiality, comparability, relevance, reliability
D) historical cost, current cost, net market value, constant purchasing power
Answer: A
Q2) The major beneficiary from the development of a conceptual framework is expected to be:
A) governments
B) preparers of financial reports
C) accounting standard setters
D) managers
Answer: C
Q3) Financial statements prepared by non-reporting entities are known as:
A) Entity financial statements
B) Special purpose financial statements
C) Quarterly mandated financial reports
D) General purpose financial statements
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: The Conceptual Framework:
Definition,
and Measurement of the Elements in General
Purpose Financial Statements
Available Study Resources on Quizplus for this Chatper
34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/71464
Sample Questions
Q1) Under the Framework,the purchase of inventory by an entity is:
A) an expense as it decreases equity
B) an expense as it arises from carrying out the major activities of the entity
C) an expense because it is a flow
D) not an expense
Answer: D
Q2) In the Framework,'the present obligation of the entity arising from past events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits' is the definition of:
A) revenues
B) assets
C) expenses
D) liabilities
Answer: D
Q3) Which of the following is not an advantage of the contract-price method?
A) It is simple to apply
B) It ignores the time value of money
C) It recognizes the interest obligation as a liability
D) It relies on readily verifiable documentary evidence
Answer: C Page 5
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 4: Fair Value Measurement
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71463
Sample Questions
Q1) What is used to assess fair value when there is insufficient evidence to reach a conclusion about whether a transaction is orderly?
A) Transaction price
B) Future cash flows
C) Quoted stock prices
D) Volume of the transaction
Q2) Which of the following is not a criticism of fair value measurement?
A) Fair value measures can be unreliable
B) Fair value measurements caused the global financial crisis of 2007
C) The measurements are not always relevant
D) The measurements impact the statement of financial position
Q3) When making a fair value measurement,management of the entity should strive to maximize ________ while minimizing _________.
A) Observable inputs; market value
B) Transaction costs; transport costs
C) Observable inputs; unobservable inputs
D) Sufficient data; transaction costs
Q4) Explain the valuation premise and discuss how it is used,depending on what is identified as the highest and best use.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 5: The Choice of Accounting Methods
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71462
Sample Questions
Q1) The choice of accounting methods is made by:
A) Setters of accounting standards
B) Preparers of financial reports
C) Users of financial reports
D) Both A and B
Q2) Which of these is not one of the ways AASB 108 'Accounting Policies' deals with the choice of accounting methods?
A) By establishing a hierarchy of authorities
B) By specifying particular policies to be used in certain situations
C) By specifying the qualitative characteristics that financial information should have
D) None of the above, i.e., all are ways in which AASB 108 deals with the choice of accounting methods
Q3) In relation to agency theory the statement that is not correct is:
A) The self-interest of various parties is often in conflict
B) It assumes that managers act opportunistically all of the time
C) It assumes that individuals act primarily to advance their own self-interest
D) None of the statements is incorrect, i.e., all are correct statements
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: The Statement of Financial Position
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/71461
Sample Questions
Q1) What term endorses the selection of information that is relevant to a specific industry?
A) Standardised format
B) Flexible format
C) Creative accounting
D) Industry format
Q2) What are the two broad categories of changes in equity?
A) Current and long-term
B) Investor and investee
C) Less than 50% and 50% and more ownership interests
D) Owner and Non-owner
Q3) Separate disclosure,on the face of the statement of financial position,is required under AASB 101 paragraph 54 for:
A) trade and other receivables
B) inventories
C) provisions
D) all of the above
Q4) Entities are required to disclose comparative information the previous period.Discuss how the correction of prior period errors may impact on the presentation of the financial statements.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Accounting for Current Assets
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71460
Sample Questions
Q1) Explain the concept of the lower of cost and net realisable value rule.
Q2) Where an allowance for doubtful debts account is maintained,the accounting entry to write off a bad debt is:
A) debit bad debts; credit accounts receivable
B) debit allowance for doubtful debts; credit accounts receivable
C) debit doubtful debts expense; credit accounts receivable
D) none of the above
Q3) Which of the statements is correct? In the United States:
A) there is a requirement to use the same cost flow assumption for taxation and financial reporting purposes
B) for perishable goods FIFO must be used
C) FIFO is not allowed for taxation purposes
D) none of the statements is correct
Q4) Which two components of expense are recognised in the statement of comprehensive income?
A) Cost of goods sold and gross profit
B) Cost of goods sold and inventory loss expense
C) Inventory loss expense and gross profit
D) Accounts payable and cost of goods sold
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 8: Accounting for Property, plant and Equipment
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/71459
Sample Questions
Q1) Which of the following is not part of the definition of investment properties?
A) Real property
B) Generation of rental revenue
C) Increases in value
D) Held for resale
Q2) Under AASB 116,the net method of treating accumulated depreciation when assets are re-valued requires:
A) accumulated depreciation to be increased by the same proportion as the gross carrying amount of the asset, so the carrying amount of the asset represents its re-valued amount
B) accumulated depreciation to be closed to the asset account before re-valuation
C) accumulated depreciation to be written back to net profit on the date of re-valuation
D) accumulated depreciation to be ignored at re-valuation
Q3) Which statement concerning depreciation is correct?
A) Land is depreciated
B) Assets that have increased in value should still be depreciated
C) Charging depreciation provides cash for asset replacement
D) None of the statements is correct
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Accounting for Company Income Tax
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/71458
Sample Questions
Q1) Discuss the results of empirical research that examines whether tax-effect accounting should continue to be required.
Q2) Permanent differences (between revenues and expenses for accounting and tax purposes):
A) can cause Deferred Tax Liabilities but not Deferred Tax Liabilities to arise
B) can cause both Deferred Tax Assets and Deferred Tax Liabilities to arise
C) can cause Deferred Tax Assets but not Deferred Tax Liabilities to arise
D) can cause neither Deferred Tax Assets nor Deferred Tax Liabilities to arise
Q3) Empirical research on whether tax-effect accounting should continue to be applied indicates that:
A) share prices are more highly associated with taxable income, and therefore financial reports should conform to the taxation treatments
B) share prices are more highly associated with accounting income, and therefore accounting standards should not be changed
C) share prices are equally associated with both accounting and taxable income, and therefore both accounting and taxation income should be reported in the financial reports
D) share prices are unrelated to either accounting or taxation income
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Accounting for Intangible Assets
Available Study Resources on Quizplus for this Chatper
32 Verified Questions
32 Flashcards
Source URL: https://quizplus.com/quiz/71457
Sample Questions
Q1) AASB 138 requires that entities classify their intangible assets into those with finite lives and those with indefinite lives.Which of these is a factor that tends to limit the useful life of intangible assets?
A) Technological obsolescence
B) Contractual and legal rights
C) Uncertainty
D) All are factors
Q2) Which of these provisions of AASB 138 is inconsistent with the asset recognition criteria of the Framework?
A) Reviewing the unamortised balance of goodwill annually and, to the extent it is no longer supported by probable future economic benefits, writing it down
B) Recognising purchased goodwill as an asset
C) Not recognising internally generated goodwill as an asset when the market value of an entity can be measured reliably
D) Amortising goodwill
Q3) Explain and discuss the application of AASB 138 in its proposals to account for research and development expenditure.
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 11: Accounting for Leases
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71456
Sample Questions
Q1) What are the main characteristics of a sale-and-leaseback agreement?
Q2) What is defined as the sum of the lease payments received by a lessor under a nance lease and any unguaranteed residual value accruing to the lessor?
A) Net investment in the lease
B) Lease receivable
C) Gross investment in the lease
D) Guaranteed minimum lease payment
Q3) What is a possible future event that can be excluded toward a supplier's substantive substitution rights?
A) A change in the expected useful life of the asset to the lessor
B) The introduction of new technology that is not substantially developed at the inception of the contract
C) A change in the amount in the minimum lease payments
D) An agreement to pay a below-market rate for the use of the assets
Q4) Which of the following is not a disclosure related to finance leases?
A) Lease income
B) Selling profit or loss
C) Finance income on the net investment in the lease
D) A maturity analysis of the lease payments receivable
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Accounting for Employee Benefits
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/71455
Sample Questions
Q1) Discuss the three types of share-based payment transactions as outlined by AASB 2 'Share-based Payment'.
Q2) In terms of post-employment benefits,at what point does past-service costs arise?
A) an employee is terminated and the employer must provide compensation for the past service of the employee
B) a defined benefits post-employment plan is established or when the plan's benefits are increased
C) a defined contributions post-employment plan is established or when the plan's benefits are increased
D) a new employee commences employment
Q3) Sick leave entitlements should be reflected as a liability in accordance with AASB 119 when:
A) it is non-accumulating sick leave
B) it is accumulating sick leave which is vesting
C) it is accumulating sick leave which is non-vesting
D) never
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 13: Accounting for Financial Instruments
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/71454
Sample Questions
Q1) Which of the following is not a type of hedging relationship?
A) Cash flow
B) Net investment in a foreign operation
C) Commodities
D) Fair value
Q2) AASB 139 requires that,subsequent to initial recognition,financial liabilities other than those designated as at fair value through profit and loss must be measured at amortised cost using the:
A) effective interest method
B) nominal interest method
C) simple interest method
D) compound interest method
Q3) Discuss the disclosure requirements in AASB 7 Financial Instruments Disclosure and AASB 132 Financial Instruments Presentation.
Q4) SPI 200 futures contracts:
A) cease trading on the third Thursday of the contract month
B) are settled on the third Thursday of the contract month
C) may only be used by traders
D) all of the above
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: The Statement of Comprehensive Income
Available Study Resources on Quizplus for this Chatper
24 Verified Questions
24 Flashcards
Source URL: https://quizplus.com/quiz/71453
Sample Questions
Q1) The standard that requires the disclosure of auditor's remuneration and executives' remuneration in the published reports is:
A) AASB 1031
B) AASB 101
C) AASB 118
D) No accounting standard requires the disclosure of auditor's remuneration and executives' remuneration
Q2) The expense example that is a classification by nature rather than by function is:
A) depreciation expense
B) administrative expenses
C) marketing expenses
D) occupancy expenses
Q3) Under AASB 101,the nature and amount of which type of items should be disclosed separately?
A) Extraordinary items
B) Significant items
C) Material items
D) None of the above
To view all questions and flashcards with answers, click on the resource link above.
17
Chapter 15: Revenue
Available Study Resources on Quizplus for this Chatper
32 Verified Questions
32 Flashcards
Source URL: https://quizplus.com/quiz/71452
Sample Questions
Q1) What must occur for a contract modification to exist?
A) The modification must be written
B) The modification requires a new contract
C) It must be initiated by the seller
D) All parties approve the modification
Q2) What term describes the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer,excluding amounts collected on behalf of third parties?
A) Settlement price
B) Contract price
C) Fair value
D) Transaction price
Q3) What are two determinants of commercial substance in a contract?
A) Payment terms and approval of the contract
B) The identification of each party's rights and payment terms
C) Risk and the timing of the entity's future cash flows
D) Approval of the contract and risk
Q4) Discuss the three types of repurchase agreements.
Q5) Distinguish the differences between a contract asset and a contract liability.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71451
Sample Questions
Q1) Studies such as Bowen,Burgstahler and Daley (1986)and Cheng and Hollie (2008)in the USA and Percy and Stokes (1992),Cotter (1996)and Clinch Sidhu and Sin (2002)in Australia have found:
A) cash flow data appeared to be similar to profit data
B) cash flow data was significantly different from profit data
C) there was no relation between profit and cash flow data
D) none of the above
Q2) Discuss the arguments for and against the presentation of the cash flow statement using the indirect approach rather than the direct approach.
Q3) Determine an entity's beginning cash balance if the net cash provided by operating activities is $26 600; net cash used by investing activities is $12 800; net cash provided by financing activities is $12 500 when the ending cash balance is $41 900.
A) $41 900
B) $26 300
C) $6 700
D) $15 300
Q4) Discuss how an entity that reports an after tax profit may be unable to generate positive cash flows from operating activities.
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 17: Financial Reporting: Segment Reporting and Highlights Statements
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71450
Sample Questions
Q1) Which of the following is an efficiency ratio?
A) Current ratio
B) Rate of return on total assets
C) Debt-to-equity ratio
D) Times interest earned
Q2) A business reports the following in its financial statements: \[\begin{array} { l l }
\text { Net profit before tax } & \$ 150 \\
\text { Interest expense } & 20 \\
\text { Income tax expense } & 30 \\
\text { Total assets at the beginning of the year } & 700 \\
\text { Total assets at the end of the year } & 850 \end{array}\]
Its rate of return on total assets is:
A) 19.4%
B) 21.9%
C) 16.8%
D) 4.83%
Q3) Discuss the benefits of the 'management approach' adopted by AASB 8.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Further Financial Reporting Issues
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/71449
Sample Questions
Q1) Paragraph 15B provides a non-exhaustive list of events and transactions for which disclosures would be required for which of the following:
A) detailed notes to the financial statements
B) the reversal of any provisions for the costs of restructuring
C) pending litigation
D) corrections of year-end errors
Q2) All of the following are usually seen as valid reasons for having different reporting standards for different business entities,except:
A) information needs of users may be different for different entities
B) costs of designing and installing an accounting information system may be different for different entities
C) investors in smaller entities generally do not read financial reports
D) users of the reports of some entities can obtain special purpose reports for their own use as required
Q3) Discuss the importance of discrete reporting. What changes have been made AASB 134 and AASB 136 to improve 'Impairment of Assets'?
Q4) Explain the significance of related-party transactions.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Accounting for Extractive Industry
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71448
Sample Questions
Q1) The accountant for a mining exploration company presents the following figures to the directors of the company as being possible values that could be assigned to its total non-current assets (comprising exploration and evaluation costs and purchases of plant and machinery to date)- $750 000,$1 600 000,or $2 350 000.Use of the figure $2 350 000 indicates that the company is probably using which of the following methods of accounting for exploration and evaluation costs?
A) Expense
B) Full-cost
C) Successful-efforts
D) Area-of-interest
Q2) Which of the following statements is correct? The expense (costs written-off)method of accounting for exploration and evaluation costs in the extractive industries:
A) is inconsistent with the framework of accounting
B) is likely to be accepted for income tax purposes
C) is simple and conservative
D) all of the above are correct
Q3) Describe the units-of-production method of amortizing pre-production costs that have been capitalized.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 20: Accounting for Agricultural Activity
Available Study Resources on Quizplus for this Chatper
17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/71447
Sample Questions
Q1) Describe the sustained-yield method and the standard method of measuring forestry assets.
Q2) Paragraphs 54 to 56 require additional disclosures for biological assets where fair value cannot be reliably measured.These disclosures include which of the following:
A) the depreciation method used
B) the range of estimates within which market value
C) the equivalent rates used
D) the net carrying amount and the accumulated depreciation
Q3) List three significant items of information that Australian Accounting Standard AASB 141 'Agricultural Activity' requires to be shown in the annual report and financial statements specifically of a primary production business.Explain why disclosure of each of these items is considered to provide useful information to investors.
Q4) Agricultural assets that are plants or trees are most appropriately measured for accounting purposes at:
A) net realisable value
B) replacement cost
C) net present value
D) historical cost
To view all questions and flashcards with answers, click on the resource link above.
23
Chapter 21: Accounting for Superannuation Entities
Available Study Resources on Quizplus for this Chatper
18 Verified Questions
18 Flashcards
Source URL: https://quizplus.com/quiz/71446
Sample Questions
Q1) AAS 25 applies specifically to superannuation plans and:
A) overrides the Australian equivalent to IFR's
B) requires the preparation of information about the rights and benefits of individual members
C) applies only to private sector superannuation plans
D) all of the above
Q2) The factors provided in paragraphs AG41 to AG42 to consider in determining whether a superannuation entity is acting as an agent to include which of the following:
A) members (or their beneficiaries) only receive insurance benefits if the external insurer/reinsurer pays claims
B) insurance premiums are only paid through the superannuation entity for administrative reasons
C) insurance premiums are effectively set directly by reference to premiums set by an external insurer.
D) all of the above
Q3) Explain the essential features of a defined benefit,externally managed,non-contributory superannuation plan whose benefits are not vested.
To view all questions and flashcards with answers, click on the resource link above.
24
Chapter 22: Accounting for Insurance
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/71445
Sample Questions
Q1) What term describes the process of reinsurers themselves reinsuring in order to reduce risk?
A) Superannuation
B) Reinsurance
C) Retrocession
D) Underwriting
Q2) What are the two sources of premium revenue?
A) Direct and indirect
B) Reinsurance and direct
C) Investments and operating
D) General and fixed-fee
Q3) Which of the following are components of expected future payments?
A) Amounts in relation to unpaid reported claims
B) Claim handling costs expected to be incurred by the insurer
C) Claims incurred but not reported
D) All of the above are components of expected future payments
Q4) List and describe the five main types of traditional activities related to life insurance.
Q5) List and explain the three broad classes of assets insurers have.
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 23: International Accounting Standards, harmonisation and Convergence
Available Study Resources on Quizplus for this Chatper
14 Verified Questions
14 Flashcards
Source URL: https://quizplus.com/quiz/71444
Sample Questions
Q1) A notable exception was the accounting treatment of intangible assets for the IFRS resulted in a significant _________ in the recognition of internally generated intangibles compared to the Australian standard.
A) increase
B) reduction
C) elimination
D) procurement
Q2) Australia adopted international accounting standards
A) on 30 June 2005.
B) on 31 December 2005.
C) on 15 January 2005.
D) on 1 January 2005
Q3) For which of the following are the International accounting standards are applicable?
A) only to for-profit entities in the private sector
B) to for-profit and not-for-profit entities and government business enterprises
C) to for-profit and not-for-profit entities but not to government business enterprises
D) none of the above
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 24: Foreign Currency Translation
Available Study Resources on Quizplus for this Chatper
24 Verified Questions
24 Flashcards
Source URL: https://quizplus.com/quiz/71443
Sample Questions
Q1) At the end of subsequent reporting periods,paragraph 23 requires that non-monetary items:
A) non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of the transaction
B) non-monetary items that are measured at fair value in a foreign currency shall be translated using the exchange rates at the date when the fair value was determined
C) both A and B
D) none of the above
Q2) Which of the following methods have been suggested for translating foreign currency financial statements:
A) historical method
B) closing-return method
C) current-return method
D) all of the above
Q3) AASB 121 requires an entity to measure its financial performance and financial position in its functional currency.What are the indicators of a functional currency? Is the functional currency the same as the presentation currency? Explain your answers.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Accounting for Corporate
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71442
Sample Questions
Q1) The extent to which mandatory reporting of corporate environmental and social activities is useful can be questioned because:
A) it is too difficult to measure the costs of such activities
B) it may become merely a public relations or similar self-justifying exercise
C) it is a waste of time forcing companies to report
D) all of the above
Q2) When an entity's net emissions are less than the permits they hold,at the end of the year they:
A) must forfeit the excess credits
B) can sell the excess credits to other entities
C) can bank the excess credits for future use
D) B and C above
Q3) When companies adopt social reporting by estimating and considering the cost of purchasing the most sustainable alternative on the market and the cost of remediation of environmental effects arising from the operations,they are applying the:
A) maintenance cost approach
B) damage cost approach
C) asset valuation approach
D) none of the above
To view all questions and flashcards with answers, click on the resource link above.
28
Chapter 26: Ethics in Accounting
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/71441
Sample Questions
Q1) Part of the ethical complaint process for filing with both Australian professional accounting bodies is:
A) filing a written complaint
B) investigating by a telephone call to a senior staff member
C) referring written complaints to the General Manager Professional Conduct (GMPC)
D) all of the above
Q2) Self-regulatory codes of ethics for professions,such as accountants means:
A) they are likely to be more lenient than legal rules and regulations enforced by the courts
B) they can forestall action by government regulatory bodies such as the Australian Securities and Investments Commission
C) they are developed and imposed by professionals who understand the problems of practitioners
D) All of the above are advantages
Q3) Briefly describe three classes of deontological theories that have been used to examine ethical behaviour.
Q4) Briefly describe the classes of teleological theories that have been used to examine ethical behaviour.
To view all questions and flashcards with answers, click on the resource link above.
29