TEST BANK for Accounting theory conceptual issues in a political and economic environment 9th edition by Harry wolk and Dodd all chapters 1-17

Test Bank for Accounting Theory, Conceptual Issues in a Political and Economic Environment 8e
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Harry Wolk James Dodd John Rozycki
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Chapterq1—ANqINTRODUCTIONqTOqACCOUNTINGqTHEORY

TRUE/FALSEqQUESTIONS
1. Financialqaccountingqrefersqtoqaccountingqinformationqthatqisqusedqbyqmanagementqforqdecision-
qmakingqpurposes.




ANSWER:qFalse

2. Accountingqtheoryqincludesqtheqbasicqrules,qdefinitions,qandqprinciplesqthatqunderlieqtheqdraftingqofq
accountingqstandardsqandqhowqtheyqareqderived.

ANSWER:qTrue

3. Accountingqtheoryqincludesqconceptualqframeworks,qaccountingqlegislation,qvaluationqmodels,q
andqhypothesesqandqtheories.

ANSWER:qTrue

4. Hypothesesqandqtheoriesqareqbasedqonqanqinformalqmethodqofqinvestigation.

ANSWER:qFalse

5. Replacementqcostqasqaqmeasureqofqassetqvalueqisqgenerallyqmoreqreliableqthanqhistoricalqcost.

ANSWER:qFalse

6. Accountingqtheoryqisqdevelopedqandqrefinedqbyqtheqprocessqofqaccountingqresearch.

ANSWER:qTrue

7. Indirectqmeasuresqarequsuallyqpreferableqtoqdirectqmeasuresqbecauseqtheyqareqlessqcostlyqtoqobtain.

ANSWER:qFalse

8. Assessmentqmeasuresqareqconcernedqwithqparticularqattributesqofqobjectsqandqareqalwaysqdirectq
measurements.

ANSWER:qFalse

9. Whenqaqdirectqassessmentqmeasureqisqused,qthereqisqalwaysqonlyqoneqcorrectqmeasure.

ANSWER:qFalse

10. Theqsimplestqtypeqofqmeasuringqsystemqisqtheqnominalqscale.

ANSWER:qTrue

11. Aqchartqofqaccountsqisqanqexampleqofqanqordinalqclassification.

ANSWER:qFalse




AccountingqTheory:q8thqedition Pageq1qofq11

,Chapterq1—ANqINTRODUCTIONqTOqACCOUNTINGqTHEORY

12. Numeralsqassignedqinqordinalqrankingsqindicateqanqorderqofqpreferenceqwhereqtheqdegreeqofq
preferenceqamongqranksqisqtheqsame.

ANSWER:qFalse

13. Inqaqratioqscale,qtheqzeroqpointqimpliesq"nothingness,"qorqtheqabsenceqofqtheqqualityqbeingq
measured.

ANSWER:qTrue

14. Usingqratioqscaleqmeasurementqisqpossibleqinqaccounting.

ANSWER:qTrue

15. Objectivityqmayqbeqdefinedqasqtheqdegreeqofqconsensusqamongqmeasurers.

ANSWER:qTrue

16. Assessmentqmeasuresqareqnotqconcernedqwithqparticularqattributesqofqobjects.

ANSWER:qFalse

17. Predictionqmeasuresqareqconcernedqwithqfactorsqthatqmayqbeqindicativeqofqfutureqconditions.

ANSWER:qTrue

18. Timelinessqandqcostqareqpertinentqtoqassessmentqmeasuresqbutqareqnotqpertinentqtoqpredictionq
measures.

ANSWER:qFalse

19. Allqaccountingqmeasurementsqareqofqeitherqtheqassessmentqorqtheqpredictionqvariety.

ANSWER:qTrue

20. Theqneedqforqinformationqonqaqtimelyqbasisqmayqconflictqwithqcostqconstraintsqinqsomeqsituations.

ANSWER:qTrue

21. Theqtermsqcalculationqandqmeasurementqbothqreferqtoqtheqvaluationqofqaqrealqphenomenaqorq
attribute.

ANSWER:qFalse

22. Calculationsqattemptqtoqsimulateqorqcomeqasqcloseqasqpossibleqtoqtheqmeasurementqofqrealq
phenomenaqorqattributes.

ANSWER:qFalse




AccountingqTheory:q8thqedition Pageq2qofq11

,Chapterq1—ANqINTRODUCTIONqTOqACCOUNTINGqTHEORY

23. FIFOqandqLIFOqmeasuresqofqcostqofqgoodsqsoldqandqinventoriesqareqexamplesqofqcalculationsq
ratherqthanqmeasurements.

ANSWER:qTrue

24. Thereqareqoftenqtrade-
offsqbetweenqobjectivityqandqthequsefulnessqofqnumbersqgeneratedqbyqtheqmeasurementqprocess
.

ANSWER:qTrue

25. Measurementqisqanqintegralqpartqofqaccountingqtheory.

ANSWER:qTrue

26. ThroughoutqtheqfinancialqhistoryqofqtheqUnitedqStates,qcurrentqvalueqhasqbeenqtheqacceptedq
valuationqsystemqforqpublishedqfinancialqstatements.

ANSWER:qFalse

27. Theqdiscountedqcashqflowqapproachqcanqbequsedqtoqdetermineqanqobjectiveqmeasurementqforqmostq
assetsqandqliabilities.

ANSWER:qFalse

28. Aqgeneralqprice-
levelqadjustmentqrefersqtoqtheqpurchasingqpowerqofqtheqmonetaryqunitaryqunitqrelativeqtoqallqgo
odsqandqservicesqinqtheqeconomy.

ANSWER:qTrue

29. Bothqexitqvalueqandqreplacementqcostqareqvaluationqsystemsqthatqfallqintoqtheqcurrentqvalueq
category.

ANSWER:qTrue

30. Theqprincipalqargumentqusedqtoqjustifyqtheqreplacementqcostqsystemqoverqexitqvaluesqisqthatqifqtheqg
reatqmajorityqofqtheqfirm'sqassetsqwereqnotqalreadyqowned,qitqwouldqbeqeconomicallyqjustifiableqtoqa
cquireqthem.

ANSWER:qTrue

MULTIPLEqCHOICEqQUESTIONS

1. Whichqofqtheqfollowingqmethodsqofqvaluingqanqassetqisqbasedqonqtheqamountqthatqaqfirmqcouldq
acquireqbyqsellingqtheqasset?
a. Replacementqcost
b. Entryqvalue
c. Exitqvalue
d. Bothqaqandqbq

ANSWER: C

AccountingqTheory:q8thqedition Pageq3qofq11

, Chapterq1—ANqINTRODUCTIONqTOqACCOUNTINGqTHEORY
2. Whichqofqtheqfollowingqmethodsqofqvaluingqanqassetqisqbasedqonqtheqamountqthatqwouldqbeqpaidqf
orqitqinqmarketsqwhereqtheqassetqwouldqordinarilyqbeqacquired?
a. Replacementqcost
b. Entryqvalue
c. Exitqvalue
d. Bothqaqandqbq

ANSWER: D

3. Whichqofqtheqfollowingqwouldqbeqconsideredqaqpoliticalqfactorqrelativeqtoqtheqfinancialqaccountingq
policyqfunction?
a. Auditors
b. Inflation
c. Taxes
d. Priceqchanges

qANSWER: A

4. Whichqofqtheqfollowingqgroupsqcarryqoutqmostqaccountingqresearch?
a. Publicqaccountingqfirms
b. Privateqindustry
c. Accountingqprofessors
d. CharteredqFinancialqAnalystsq

ANSWER: C

5. Ifqaqnumberqassignedqtoqanqobjectqisqanqactualqmeasurementqofqaqpropertyqofqtheqobject,qitqisqr
eferredqtoqasqa(n):
a. Directqmeasurement.
b. Biasedqmeasurement.
c. Indirectqmeasurement.
d. Predictionqmeasurement.

ANSWER: A

6. Whichqofqtheqfollowingqfactorsqisqnotqlistedqinqyourqtextqasqaffectingqaqdirectqassessmentqmeasure?
a. Theqmeasurer
b. Theqattributeqbeingqmeasured
c. Instrumentsqavailableqforqtheqmeasuringqtask
d. Theqindividualqwhoqwillquseqtheqmeasureq

ANSWER: D

7. Theqsimplestqtypeqofqmeasuringqsystemqisqthe:
a. Intervalqscale.
b. Ratioqscale.
c. Nominalqscale.
d. Ordinalqscale.

ANSWER: C




AccountingqTheory:q8thqedition Pageq4qofq11