Question 1

Inductive approaches to accounting theory usually attempt to be descriptive.

Accepted Answer

A) True 
 B)False

Question 2

Because accounting is not very much concerned with the human element, we can expect it to be more precise in its measurement and predictions than are the natural sciences.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true?

Accepted Answer

A)  A paradigm is a shared problem-solving view among members of a science or discipline.
B)  In accounting, the shared paradigm has been current valuation.
C)  Criticism of historical cost has increased since inflation lessened during the 1980s.
D)  It appears that a scientific revolution has occurred in accounting because historical cost is no longer the dominant paradigm.

Question 4

Discuss the differences between each of the following:
•Normative vs. descriptive theories
•Inductive vs. deductive reasoning
•Global vs. particularistic theories
Also identify how these types of approaches relate to one another. (For example: is deductive research normative or descriptive; is it global or particularistic?)

Accepted Answer

Normative theories contain at least one ...

Question 5

Information economics research is usually inductive in nature.

Accepted Answer

A) True 
 B)False

Question 6

An argument against using students as subjects in behavioral research experiments is that they are not representative of the broad population of accounting information users.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements regarding behavioral research is true?

Accepted Answer

A)  It is a normative approach.
B)  The main concern of this type of research is how users of accounting information make decisions and what information they need.
C)  Many studies have shown that there are no discrepancies between normative decision models and the actual decision process of users.
D)  Since behavioral research is positive in approach, it is impossible to reach a conclusion regarding whether or not the usage of accounting data for decision-making purposes could be improved upon.

Question 8

Analytical/deductive research methods are commonly used in accounting research.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements regarding behavioral research in accounting is not true?

Accepted Answer

A)  Much of this research uses laboratory subjects in carefully controlled experimental situations.
B)  This approach seeks to understand what accounting information is selected for use and how it is processed.
C)  This research has found that published financial statements are not often used for managerial decision-making purposes.
D)  The question of how representative student subjects are to the broad population is a problem that pervades virtually all behavioral research that uses student subjects.

Question 10

The decision-model approach to accounting research seeks to determine what information users of accounting information want.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is  not‾\underline{not}not​  true regarding the efficient-markets hypothesis?

Accepted Answer

A)  It stems primarily from the discipline of finance.
B)  It assumes that market prices of publicly traded securities reflect fully all publicly available information.
C)  As a result of this proposition, the impetus for less disclosure with more concern for choice among accounting alternatives has grown stronger.
D)  It states that the return of a security is based on its risk.  C

Question 12

Which of the following accounting research approaches arose as a result of the perceived separation of interests in the modern corporation between management and ownership interests?

Accepted Answer

A)  Capital markets research
B)  Behavioral research
C)  Agency theory
D)  Information economics C

Question 13

Positive accounting research attempts to explain behavioral relationships in accounting.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following statements is true regarding the decision-model approach to research?

Accepted Answer

A)  A premise underlying this research approach is that decision-makers may need to be taught how to use information they are unfamiliar with.
B)  This approach has become more important with the rise of empirical research in accounting.
C)  Some advocates of newer approaches have declared that this approach is too scientific.
D)  The decision-model approach does not parallel those of standard-setters because standard-setters must cope with the politics of the regulatory process.

Question 15

The scientific method refers to the formal procedures used to derive the laws and principles that govern scientific disciplines, such as physics and chemistry, and is therefore not used in the published research on accounting.

Accepted Answer

A) True 
 B)False

Question 16

Much of the accounting research in the behavioral area uses laboratory subjects in carefully controlled experimental situations.

Accepted Answer

A) True 
 B)False

Question 17

One of the purposes of positive research is to satisfy information demand by managers, auditors, creditors, and standard setters.

Accepted Answer

A) True 
 B)False  True

Question 18

A premise stating that accounting reports should be based on historical costs would indicate a normative approach.

Accepted Answer

A) True 
 B)False

Question 19

When the premises of a theory are constructed so that they can be tested by statistical inference, they are usually called:

Accepted Answer

A)  postulates.
B)  inferences.
C)  hypotheses.
D)  assumptions.

Question 20

General deductive reasoning is extremely important in accounting theory and policy-making.

Accepted Answer

A) True 
 B)False

Exam 2: Accounting Theory and Accounting Research

Inductive approaches to accounting theory usually attempt to be descriptive.

Correct Answer
verified

Because accounting is not very much concerned with the human element, we can expect it to be more precise in its measurement and predictions than are the natural sciences.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Correct Answer
verified
Normative theories contain at least one ...
View Answer

Information economics research is usually inductive in nature.

Correct Answer
verified

An argument against using students as subjects in behavioral research experiments is that they are not representative of the broad population of accounting information users.

Correct Answer
verified

Which of the following statements regarding behavioral research is true?

Correct Answer
verified

Analytical/deductive research methods are commonly used in accounting research.

Correct Answer
verified

Which of the following statements regarding behavioral research in accounting is not true?

Correct Answer
verified

The decision-model approach to accounting research seeks to determine what information users of accounting information want.

Correct Answer
verified

Which of the following statements is $\underline{not}$ true regarding the efficient-markets hypothesis?

Correct Answer
verified
C

Which of the following accounting research approaches arose as a result of the perceived separation of interests in the modern corporation between management and ownership interests?

Correct Answer
verified
C

Positive accounting research attempts to explain behavioral relationships in accounting.

Correct Answer
verified

Which one of the following statements is true regarding the decision-model approach to research?

Correct Answer
verified

The scientific method refers to the formal procedures used to derive the laws and principles that govern scientific disciplines, such as physics and chemistry, and is therefore not used in the published research on accounting.

Correct Answer
verified

Much of the accounting research in the behavioral area uses laboratory subjects in carefully controlled experimental situations.

Correct Answer
verified

One of the purposes of positive research is to satisfy information demand by managers, auditors, creditors, and standard setters.

Correct Answer
verified
True

A premise stating that accounting reports should be based on historical costs would indicate a normative approach.

Correct Answer
verified

When the premises of a theory are constructed so that they can be tested by statistical inference, they are usually called:

Correct Answer
verified

General deductive reasoning is extremely important in accounting theory and policy-making.

Correct Answer
verified

Exam 2: Accounting Theory and Accounting Research

Inductive approaches to accounting theory usually attempt to be descriptive.

Correct AnswerverifiedShow Answer

Because accounting is not very much concerned with the human element, we can expect it to be more precise in its measurement and predictions than are the natural sciences.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNormative theories contain at least one ...View AnswerShow Answer

Information economics research is usually inductive in nature.

Correct AnswerverifiedShow Answer

An argument against using students as subjects in behavioral research experiments is that they are not representative of the broad population of accounting information users.

Correct AnswerverifiedShow Answer

Which of the following statements regarding behavioral research is true?

Correct AnswerverifiedShow Answer

Analytical/deductive research methods are commonly used in accounting research.

Correct AnswerverifiedShow Answer

Which of the following statements regarding behavioral research in accounting is not true?

Correct AnswerverifiedShow Answer

The decision-model approach to accounting research seeks to determine what information users of accounting information want.

Correct AnswerverifiedShow Answer

Which of the following statements is not‾\underline{not}not​ true regarding the efficient-markets hypothesis?

Correct AnswerverifiedC

Which of the following accounting research approaches arose as a result of the perceived separation of interests in the modern corporation between management and ownership interests?

Correct AnswerverifiedC

Positive accounting research attempts to explain behavioral relationships in accounting.

Correct AnswerverifiedShow Answer

Which one of the following statements is true regarding the decision-model approach to research?

Correct AnswerverifiedShow Answer

The scientific method refers to the formal procedures used to derive the laws and principles that govern scientific disciplines, such as physics and chemistry, and is therefore not used in the published research on accounting.

Correct AnswerverifiedShow Answer

Much of the accounting research in the behavioral area uses laboratory subjects in carefully controlled experimental situations.

Correct AnswerverifiedShow Answer

One of the purposes of positive research is to satisfy information demand by managers, auditors, creditors, and standard setters.

Correct AnswerverifiedTrue

A premise stating that accounting reports should be based on historical costs would indicate a normative approach.

Correct AnswerverifiedShow Answer

When the premises of a theory are constructed so that they can be tested by statistical inference, they are usually called:

Correct AnswerverifiedShow Answer

General deductive reasoning is extremely important in accounting theory and policy-making.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Normative theories contain at least one ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Which of the following statements is $\underline{not}$ true regarding the efficient-markets hypothesis?

Correct Answer
verified
C

Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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