Contemporary Accounting Issues Textbook Exam Questions - 226 Verified Questions

Page 1


Contemporary Accounting Issues

Textbook Exam Questions

Course Introduction

This course explores current and emerging topics in the field of accounting, focusing on the practical challenges and trends affecting today's accounting professionals. Students will examine issues such as financial reporting changes, ethical considerations, globalization, advances in technology, regulatory updates, and the impact of environmental, social, and governance (ESG) factors on accounting practices. Through case studies, analysis of recent literature, and discussion of real-world scenarios, the course prepares students to critically assess and respond to the dynamic landscape of contemporary accounting.

Recommended Textbook

Contemporary Issues in Accounting 2nd Edition by Michaela Rankin

Available Study Resources on Quizplus

12 Chapters

226 Verified Questions

226 Flashcards

Source URL: https://quizplus.com/study-set/3296

Page 2

Chapter 1: Contemporary Issues in Accounting

Available Study Resources on Quizplus for this Chatper

18 Verified Questions

18 Flashcards

Source URL: https://quizplus.com/quiz/65391

Sample Questions

Q1) Research in accounting focuses on:

A)Issues within accounting at the more micro level.

B)Issues related to accounting at a macro level.

C)Questions such as,what role has accounting played in the rise of capitalism.

D)The bigger picture.

Answer: A

Q2) Which of the following statements is true in relation to research?

A)Often,searching or investigating a topic more than once,may detract from our understanding of the issue.

B)By searching over and over again,each study should contribute to our understanding of the issue.

C)Most research studies will provide definitive answers to the problem examined.

D)Some research studies will not provide definitive answers to the problem,in which case further investigation should be postponed.

Answer: B

To view all questions and flashcards with answers, click on the resource link above. Page 3

Chapter 2: The Conceptual Framework for Financial Reporting

Available Study Resources on Quizplus for this Chatper

17 Verified Questions

17 Flashcards

Source URL: https://quizplus.com/quiz/65390

Sample Questions

Q1) Which of the below responses is incorrect. An understanding of the application of the concepts in the Conceptual Framework is required to:

A)understand accounting requirements.

B)account for transactions and events where no there is no specific accounting standard.

C)exercise professional judgement.

D)select an exact basis of measurement.

Answer: D

Q2) Prudence is defined in the Proposed Framework as:

A)making good judgements under conditions of certainty.

B)the exercise of caution when making judgements under conditions of uncertainty.

C)the lack of caution when making judgements under conditions of uncertainty.

D)making poor judgements under conditions of certainty.

Answer: B

To view all questions and flashcards with answers, click on the resource link above.

4

Chapter 3: Standard Setting

Available Study Resources on Quizplus for this Chatper

20 Verified Questions

20 Flashcards

Source URL: https://quizplus.com/quiz/65389

Sample Questions

Q1) Which of the following is a fundamental assumption of public interest theory?

A)Regulation is costly.

B)People rationally advance their own self-interest.

C)Economic markets are fragile.

D)There is an efficient market.

Answer: C

Q2) Which of the following is a fundamental assumption of Capture Theory?

A)Regulation is costly.

B)People rationally advance their own self-interest.

C)Economic markets are fragile.

D)The market is an efficient market.

Answer: B

Q3) Which if the following is an advantage of rules-based accounting standards?

A)Can cover most situations.

B)Reduced complexity of standards.

C)Reduced opportunities for earnings management through judgements.

D)Improve representational faithfulness of financial statements.

Answer: C

To view all questions and flashcards with answers, click on the resource link above.

5

Chapter 4: Measurement

Available Study Resources on Quizplus for this Chatper

18 Verified Questions

18 Flashcards

Source URL: https://quizplus.com/quiz/65388

Sample Questions

Q1) Measurement in an accounting context involves:

A)Apportioning costs between items.

B)Determining the quantities of assets held by an entity.

C)Estimating the amounts to be derived from assets.

D)All of the above.

Q2) Information produced using current cost as the measurement base is considered:

A)More comparable between different companies.

B)Less relevant.

C)Less understandable.

D)All of the above.

Q3) The statement that is true with respect to current cost accounting is:

A)Current operating profit is the excess of the current value of the output sold over the current cost of the related inputs.

B)Gains are recorded only when the assets are disposed of.

C)Holding gains are not included in current operating profits.

D)None of the above is true.

To view all questions and flashcards with answers, click on the resource link above.

Chapter 5: Theories in Accounting

Available Study Resources on Quizplus for this Chatper

17 Verified Questions

17 Flashcards

Source URL: https://quizplus.com/quiz/65387

Sample Questions

Q1) Legitimacy theory argues that disclosure practice.

A)The business of business is business.

B)Organisations can only continue to exist if they demonstrate values consistent with society at large.

C)Organisations should focus on wealth maximisation for their owners.

D)Consumers are only interested in minimising costs to themselves.

Q2) Agency theory would hold that managers on compensation contracts which have bonuses tied to a current measure of performance would prefer to:

A)Smooth income using either expensing or capitalising.

B)Be indifferent to expensing or capitalising transactions.

C)Expense transactions rather than capitalise them.

D)Capitalise transactions rather than expense them.

Q3) Which of the following is NOT considered a stakeholder according to the managerial branch of stakeholder theory?

A)Customers.

B)Communities.

C)Competitors.

D)None of the above,i.e.they are all considered stakeholders.

To view all questions and flashcards with answers, click on the resource link above.

Chapter 6: Products of the Financial Reporting Process

Available Study Resources on Quizplus for this Chatper

20 Verified Questions

20 Flashcards

Source URL: https://quizplus.com/quiz/65386

Sample Questions

Q1) The kinds of information likely to be included in the annual report includes:

A)Occupational health and safety disclosures.

B)Corporate governance.

C)Environmental performance.

D)All of the above.

Q2) The annual report:

A)Is thought to have little influence on stakeholder perceptions.

B)May have significant additional voluntary disclosure in the financial statements.

C)Is used for impression management.

D)Is not thought to be an important information avenue for organisations.

Q3) Which of the following is NOT an argument for a standardised annual reporting period?

A)Most businesses operate on a natural 12 month cycle.

B)It allows investors to compare entities more easily.

C)It is necessary to calculate an annual dividend.

D)Various laws require regular information be produced by the entity.

To view all questions and flashcards with answers, click on the resource link above.

8

Chapter 7: Corporate Governance

Available Study Resources on Quizplus for this Chatper

21 Verified Questions

21 Flashcards

Source URL: https://quizplus.com/quiz/65385

Sample Questions

Q1) According to the 'Anglo-Saxon' model whose interest should be the focus of corporate governance?

A)Community.

B)Employees.

C)Shareholders.

D)Environment.

Q2) Which of the following examples is NOT advantage of good corporate governance?

A)Increasing the cost of capital.

B)Expanding the company's shareholder base.

C)Reducing perceived risks to investors.

D)Increased market confidence.

Q3) Which of the following is NOT an example of corporate governance practice?

A)Formation of a nominating committee to identify potential new directors.

B)Codes of conduct for directors.

C)Requirements that most board directors be independent.

D)None of the above,i.e.they are all examples of corporate governance.

To view all questions and flashcards with answers, click on the resource link above. Page 9

Chapter 8: Capital Markets Research and Accounting

Available Study Resources on Quizplus for this Chatper

19 Verified Questions

19 Flashcards

Source URL: https://quizplus.com/quiz/65384

Sample Questions

Q1) Which of the following is NOT one of the three assumptions underlying value relevance literature?

A)Share prices adequately represent investors' use of information in valuing equity securities.

B)Accounting earnings are not highly associated with equity market value changes.

C)Equity users are the dominant users of financial reports.

D)Share-price-based tests can measure relevance and reliability as defined by accounting bodies.

Q2) Which of the following is NOT a finding or assumption of capital markets research?

A)The work of financial intermediaries impacts on share prices.

B)Capital providers consider auditors increase accounting information credibility.

C)The qualification of a financial report will have a significant impact on share price.

D)Analysts' earnings forecasts are more accurate than time-series models of earnings.

To view all questions and flashcards with answers, click on the resource link above.

Chapter 9: Earnings Management

Available Study Resources on Quizplus for this Chatper

20 Verified Questions

20 Flashcards

Source URL: https://quizplus.com/quiz/65383

Sample Questions

Q1) Researchers examining share price reactions to evidence of fraudulent reporting have concluded that:

A)Markets are generally surprised by the information.

B)Markets are highly efficient.

C)Markets interpret the discovery as good news.

D)Share prices are generally unaffected.

Q2) Which of the following is NOT an example of real activities management that could be used to manage earnings?

A)Accelerating sales.

B)Reducing discretionary spending.

C)Adjusting loan loss provisions.

D)Delaying research and development.

Q3) Research into income smoothing has concluded that:

A)The findings are mixed with regards to earnings quality.

B)Smoothed income indicates high earnings quality.

C)Smoothed income indicates low earnings quality.

D)There is no relationship between income smoothing and earnings quality.

To view all questions and flashcards with answers, click on the resource link above.

11

Chapter 10: Fair Value Accounting

Available Study Resources on Quizplus for this Chatper

20 Verified Questions

20 Flashcards

Source URL: https://quizplus.com/quiz/65382

Sample Questions

Q1) AASB 13 Fair Value Accounting has an effective date of:

A)January 2013.

B)July 2005.

C)July 2011.

D)January 2015.

Q2) When valuing non-financial assets which use for the asset should be considered?

A)The asset's expected use.

B)The asset's highest and best use.

C)The asset's current use.

D)None of the above.

Q3) Why does the new definition focus on an exit price when valuing and asset or liability?

A)It introduces the concept of an external party into the transaction.

B)It focuses on the current value.

C)It is specific to the item being considered.

D)All of the above.

To view all questions and flashcards with answers, click on the resource link above. Page 12

Chapter 11: Sustainability and Environmental Accounting

Available Study Resources on Quizplus for this Chatper

17 Verified Questions

17 Flashcards

Source URL: https://quizplus.com/quiz/65381

Sample Questions

Q1) In regards to the Global Reporting Initiative (GRI),Which of the following is true:

A)it was launched in 1997 as an initiative to develop a globally accepted reporting framework.

B)it includes 55 core indicators and 29 additional indicators across environmental,economic and social performance areas.

C)it is the most widely recognised and commonly used guidelines for sustainability reporting.

D)all of the above.

Q2) ISO 14001 Environmental Management requires certifying companies to assess environmental performance against:

A)Industry benchmarks.

B)Government set standards.

C)Internally developed policies,objectives and targets.

D)Internationally established values.

To view all questions and flashcards with answers, click on the resource link above. Page 13

Chapter 12: International Accounting

Available Study Resources on Quizplus for this Chatper

19 Verified Questions

19 Flashcards

Source URL: https://quizplus.com/quiz/65380

Sample Questions

Q1) The international Accounting Standards Board's objective for International Accounting Standards would be best described as:

A)Harmonisation.

B)Convergence.

C)Adoption.

D)Adaption.

Q2) Which of the following is NOT considered a challenge for international business operations when faced with accounting diversity?

A)It reduces access to international investments.

B)National accounting regimes are inferior to international accounting.

C)It is costly to restate financial statements.

D)None of the above,i.e.they are all a challenge.

Q3) China's acceptance of international accounting standards would be best described as:

A)Harmonisation.

B)Convergence.

C)Adoption.

D)Indifference.

To view all questions and flashcards with answers, click on the resource link above.

14

Turn static files into dynamic content formats.

CreateΒ aΒ flipbook