Question 1 1 out of 1 points What theory on the outcomes of providing accounting information attempts to answer the question: What

is an individuals expected benefit from a particular course of action? Answer Selected Answer: Agency theory Correct Answer: Agency theory Question 2 1 out of 1 points What theory on the outcomes of providing accounting information rejects the view that knowledge of accounting is grounded in objective principles Answer Selected Answer: Critical perspective Correct Answer: Critical perspective Question 3 1 out of 1 points What theory on the outcomes of providing accounting information attempts to assess an individuals ability to use information? Answer

Selected Answer: Human information processing Correct Answer: Human information processing Question 4 1 out of 1 points Which of the following outcomes of providing accounting information is based on the supply and demand model Answer Selected Answer: Efficient markets Correct Answer: Efficient markets Question 5 1 out of 1 points Conducting research by the scientific method involves five major steps. Which of the following is the first step? Answer Selected Answer: Identify and state the problem to be studied. Correct Answer: Identify and state the problem to be studied. Question 6

1 out of 1 points Which of the following outcomes of providing accounting information is an attempt to deal with both risks and returns? Answer Selected Answer: Capital asset pricing model Correct Answer: Capital asset pricing model Question 7 1 out of 1 points Which of the following is not viewed as a cost to the principal in an agency relationship? Answer Selected Answer: Monitoring expenditures by the agent Correct Answer: Monitoring expenditures by the agent Question 8 1 out of 1 points The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as all publicly available information including past stock prices? Answer Selected Answer:

Semi-strong Correct Answer: Semi-strong Question 9 1 out of 1 points Which of the following is not a conclusion that has been drawn from human information processing research? Answer Selected Answer:

Individuals are able to process and integrate large amounts of information simultaneously

Correct Answer:

Individuals are able to process and integrate large amounts of information simultaneously

Question 10 1 out of 1 points The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as information, including security price trends, publicly available information, and insider information? Answer Selected Answer: Strong Correct Answer:

Strong Question 11 1 out of 1 points Which of the following research approaches emphasizes going from the specific to the general? Answer Selected Answer: Inductive Correct Answer: Inductive Question 12 1 out of 1 points The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as knowledge of past security prices? Answer Selected Answer: Weak Correct Answer: Weak Question 13 1 out of 1 points Which of the following outcomes of providing accounting information is an attempt to

identify individual securities that are mispriced by reviewing all available financial information? Answer Selected Answer: Fundamental analysis Correct Answer: Fundamental analysis Question 14 1 out of 1 points Which of the following research approaches is attributed to DR Scott? Answer Selected Answer: Ethical Correct Answer: Ethical Question 15 1 out of 1 points Which of the following research approaches is based on the concept of utility or usefulness? Answer Selected Answer: Pragmatic Correct Answer:

Pragmatic Question 16 1 out of 1 points Each assetinventory, plant, equipment, and so onwould be valued based on the selling price that would be realized if the firm chose to dispose of it is the definition of which of the following current value concepts? Answer Selected Answer: Exit value Correct Answer: Exit value Question 17 1 out of 1 points The definition of the economic concept ofincomeis usually attributed towhich of the following economists? Answer Selected Answer: J. R. Hicks Correct Answer: J. R. Hicks Question 18 1 out of 1 points Which of the following is not an approach to determining current value?

Answer Selected Answer: Thrift value Correct Answer: Thrift value Question 19 1 out of 1 points Which of the following is not a criteria outlined in SEC Staff Accounting Bulletin No. 101 for the recognition of revenue? Answer Selected Answer: Delivery has not occurred. Correct Answer: Delivery has not occurred. Question 20 1 out of 1 points The principal disadvantage of using the percentage of completion method of recognizing revenue from long-term contracts is that it Answer Selected Answer:

Gives results bases upon estimates that may be subject to considerable uncertainty

Correct

Answer:

Gives results bases upon estimates that may be subject to considerable uncertainty

Question 21 1 out of 1 points Arid Lands, Inc., is engaged in extensive exploration for water in the Caprock Desert. If upon discovery of water the corporation does not recognize any revenue from water sales until the sales exceed the costs of exploration, the basis of revenue recognition being employed is the Answer Selected Answer: Sunk cost (or cost recovery) basis Correct Answer: Sunk cost (or cost recovery) basis Question 22 1 out of 1 points Uncertainty and risks inherent in business situations should be adequately considered in financial reporting. This statement is an example of the concept of Answer Selected Answer: Conservatism Correct Answer: Conservatism Question 23 1 out of 1 points

Which of the following is not a concept of income identified by Bedford? Answer Selected Answer: Investment Correct Answer: Investment Question 24 1 out of 1 points In the transactions approach to income determination, income is measured by subtracting the expenses resulting from specific transactions during the period from revenues of the period also resulting from transactions. Under a strict transactions approach to income measurement, which of the following would not be considered a transaction? Answer Selected Answer:

Adjustment of inventory in lower of cost or market inventory valuations when market is below cost.

Correct Answer:

Adjustment of inventory in lower of cost or market inventory valuations when market is below cost.

Question 25 1 out of 1 points The term revenue recognition conventionally refers to Answer Selected

Answer:

The process of identifying those transactions that result in an inflow of assets from customers.

Correct Answer:

The process of identifying those transactions that result in an inflow of assets from customers.

Question 26 1 out of 1 points The installment method of recognizing revenue is not acceptable for financial reporting if Answer Selected Answer: The collectability of the sales price is reasonably assured Correct Answer: The collectability of the sales price is reasonably assured Question 27 1 out of 1 points Determining periodic earnings and financial position depends on measuring economic resources and obligations and changes in them as these changes occur. This explanation pertains to Answer Selected Answer: Accrual accounting Correct Answer: Accrual accounting

Question 28 1 out of 1 points Under what condition is it proper to recognize revenues prior to the sale of the merchandise? Answer Selected Answer: When the ultimate sale of the goods is at an assured sales price Correct Answer: When the ultimate sale of the goods is at an assured sales price Question 29 1 out of 1 points One of the basic features of financing accounting is the Answer Selected Answer:

Direct measurement of economic resources and obligations and changes in them in terms of money

Correct Answer:

Direct measurement of economic resources and obligations and changes in them in terms of money

Question 30 1 out of 1 points The one-time overstatement of restructuring charges to reduce assets, which reduces future expenses, is the definition of which of the following earnings management techniques?

Answer Selected Answer: Taking a bath Correct Answer: Taking a bath