WorksheetsPOP QUIZ - FAR660
Total questions: 25
Worksheet time: 25mins
Which of the following are not included in the evolution of double entry bookkeeping?
the Egyptian civilizations
the Chinese civilizations
the Indian civilizations
the Roman civilizations
After the discovery of double entry system, the evolution of the practice of period financial statement happened in:
Fifteenth and sixteenth century
Seventeenth and Eighteenth century
Sixteenth and seventeenth century
Eighteenth and nineteenth century
The use of separate inventory accounts for different types of goods happened in:
Fifteenth century
Sixteenth century
Seventeenth century
Eighteenth century
The technique adopted were motivated by the desire to smooth earnings happened mostly in which phase in the USA?
Management contribution
Institution contribution
Professional contribution
Politicization
The creation of the Securities and Exchange Commission happened in ______________
Management contribution
Institution contribution
Professional contribution
Politicization
The limitation of management and professional association in formulating accounting theory is the phase of ___________
Management contribution
Institution contribution
Professional contribution
Politicization
Zenon, a manager of the great estate of Appolonius, introduced in 256 BC is an elaborate system of responsibility accounting in which civilization?
Chaldean-Babylonian, Assyrian and Sumerian
Roman
Greek
Egyptian
These are among the 7 preconditions for an orderly accounting system by Littleton except_________
Private property
Arithmetic
Money
Debit transaction
Which of the following was established in 1967 under the accountant act?
MIA
MICPA/MACPA
FRF
MASB
Capital Market and Services Act (CMSA) 2007: requires company to submit _______________________to Securities Commission.
A copy of business registration
A copy of tax file
A copy of bank statement
A copy of annual report
Which of these is not a criticism of the descriptive pragmatic approach to theory construction?
It does not allow for accounting techniques to be challenged
Some of the users of accounting information may be illogical in their responses
The focus is on the accountant’s behaviour not on measuring the attributes of the firm
There is no assessment of whether the accountant reports in the way he or she should
Which of these is not a typical approach to testing hypotheses under positive accounting theory?
Questionnaires
Surveys
Taking out data of specific accounting systems to determine whether the data helps users to make the right decisions
Testing the assumed importance of accounting outputs in the marketplace
Which of these is not an assumption used in normative theory construction?
There are multiple available profit measures
Financial accounting is useful for making economic decisions
Markets are inefficient and can be fooled by “creative accountants’
Conventional accounting is inefficient
The theories use large-scale statistical research, remote from practitioners and their concerns is a criticism of:
The psychological pragmatic approach
The naturalist approach
The descriptive pragmatic approach
The positive accounting approach
A theory development based on scientific methodology using economic based empirical literature is under______________
The normative approach
The psychological pragmatic approach
The descriptive pragmatic approach
The positive accounting approach
In which of the following context would accountants be required to exercise professional judgement?
Estimating net realisable value of inventories
Deciding which model to use to measure value of property, plant and equipment after initial recognition
Determining depreciation method used for non-current assets
All of the options are correct
Considering whether to use historical cost or fair value relates to which of the following components in accounting policy decisions?
Recognition
Disclosure
Measurement
Definition
Normative Theories:
Predicts unobserved phenomena
Are based on what is happening in the world
Explain why people behave in certain ways
Prescribe what should be the case based on a specific objective
Watts and Zimmerman’s Positive accounting theory is:
One of several normative theories of accounting
One of several positive theories of accounting
One of several critical theories of accounting
None of the given option is correct
A central assumption of Positive Accounting Theory (PAT) is that:
Individual act solely on the basis of self interest
Firms seek to maximize profits
The interests of principals and agents are not aligned
Financial statements will be audited regardless of legal requirements
The key theory that underpins PAT is:
The efficient markets hypothesis
Agency theory
Normative ethical theory
None of the given options is correct
The principal’s expectation of opportunistic behaviour by his or her agent results in lower payments to:
The agent
The principal
The principal and the agent
Neither the principal nor the agent
Which of the following best describes the basis of the accounting measurement model in use today?
Historical cost accounting
Current cost accounting
Historical cost, except where conceptual frameworks and accounting standards allow deviation from it
A mixed method accounting model
Market failure or inefficiency happened due to these reasons except:
lack of competition
no barriers to entry
information asymmetry between buyers and sellers
public-good products selling
In Public interest theory, government intervention happened due to these reasons except:
public interest groups demand intervention
because they are neutral arbiters
to get votes
to increase the wealth of politicians
