ACCTd1080dFAT-Test-Bank
Chapterd1d–
dIntroductiondtodfinancialdaccountingdtheorydTopicd1
1. Whichdofdthedfollowingdisdtruedaboutdtheoriesdindgeneral?
A. Theoriesdcandincludedanydcoherentdsetdofdideasdordstatementsdtodexplain,dordprovidedguidance
drespectdof,dcertaindphenomena.
B. Theoriesdmustdbedempiricallydbaseddtoddescribedwhatdis,dratherdthandwhatdshoulddbe.
C. Theoriesdmustdbedbaseddondinductivedreasoningdtodprovidedadgeneralisationdordprediction.
D. Alldofdthedgivendoptionsdaredcorrect.
2. AccordingdtodThoulessd(1974),dthed'tricks'dsomedwritersdoftendusedtoddistractdreadersdfrom
dlimitationsdindthedlogicdofdandargumentdordtheorydare:
A. Usingdemotionally-toneddwords
B. Evasiondofdadsounddrefutationdofdandargumentdbydusedofdadsophisticateddformula
C. Changingdthedmeaningdofdadtermdduringdthedcoursedofdandargument
D. Alldofdthedgivendoptionsdaredcorrect.
3. Normativedaccountingdtheoriesdanddresearchdseekdto:
A. Explaindanddpredictdparticulardphenomenadbaseddondobservation
B. Prescribedparticulardapproachesdnotddrivendbydexistingdpractices
C. Describedwhatdisdnormal,dordgenerallydaccepted,dpractice
D. Alldofdthedgivendoptionsdaredcorrect.
4. Adtheorydthatdpredictsdthat,difdcertaindconditionsdaredmetdthendparticulardaccountingdpractices
dwilldbedobserved,disdandexampledof:
A. PositivedAccountingdTheory
B. NegativedAccountingdTheory
C. NormativedAccountingdTheory
D. DescriptivedAccountingdTheory
5. WhichdofdthedfollowingdisdnotdassumeddindPositivedAccountingdTheory?
A. Individualsd(includingdmanagers)daredeconomicallydrationaldindtheirdbehaviour.
B. Individualsd(includingdmanagers)daredprimarilydmotivateddbydself-interest.
C. Thednaturaldobjectivedofdmanagersdisdtodmaximisedthedwealthdofdthedfirm.
D. Managersdarednotdindifferentdindselectingdaccountingdmethodsdtoduse.
6. Adtheoryd(ordmodel)dthatdstatesdthatdthedmostdusefuldinformationdfordeconomicddecisiondmakin
disdthedcurrentdcashdequivalents,dasdmeasureddbydthedcurrentdnetdmarketdvalues,dis:
A. CurrentdPricedAccounting
B. ContinuouslydContemporarydAccountingdTheory
C. CurrentdCostdAccountingdTheory
D. ReplacementdValuedAccountingdTheory
,ACCTd1080dFAT-Test-Bank
7. OnedcriticismdofdPositivedAccountingdTheorydisdthatditdtellsdusdnothingdabout:
A. Whetherdthedpracticedordmethoddbeingduseddisdthedmostdefficient
B. Whetherdthedpracticedordmethoddbeingduseddisdthedmostdequitable
C. Whichdmethoddadfirmdshouldduse
D. Alldofdthedgivendoptionsdaredcorrect.
8. Whichdofdthedfollowingdisdnotdandexampledofdadnormativedaccountingdtheorydordresearch?
A. Conceptualdframeworksdofdaccounting
B. Criticaldperspectivesdofdaccountingdpractice
C. Capitaldmarkets-basedd(securitydprice)dresearch
D. Truedincomedtheories
9. Indevaluatingdtheoriesdofdaccounting,dwhichdofdthedfollowingdisdnotdtrue?
A. Differentdtheoriesdaredoftendthedresultdofdworkingdinddifferentdparadigms,dwhichdprovide
dgreatlyddifferentdperspectives.
B. PositivedAccountingdTheorydisdandexampledofdadtheorydthatdisdvaluedfree.
C. Selectingdadtheory,dtopic,ddesigndordmethoddfordresearchdisdbaseddondvaluedjudgements.
D. Alldtheoriesdofdaccounting,danddassumptionsdondwhichdtheydaredbased,daredabstractionsdof
dreality,danddsodchoicedisdbaseddondhowdcloselydthedtheorydfitsdourdowndperceptions.
10. Whichdofdthedfollowingdstatementsdisdtruedaboutdprovingdadtheory?
A. AndaccepteddPositivedAccountingdTheorydpurportsdtodprovidedsounddpredictionsdthedmajority
dthedtime.
B. AndaccepteddPositivedAccountingdTheorydthatdpurportsdtodexplaindanddpredict,dmustdholddtrue
dalldcases.
C. AdPositivedAccountingdTheoryddoesdnotdneeddtodbedtesteddordproven.
D. AndaccepteddPositivedAccountingdTheorydhasdnod'exceptionsdtodthedrule'.
11. Whichdofdthedfollowingdstatementsdalignsdwithdthedviewsdofd'Falsificationists',dsuchdasdPopper
danddothers?
A. Hypothesesdaredproposeddbydguessing,dwithoutdguidancedfromdexistingdtheories.
B. Itdisdpossibledtodstatedthatdadtheorydisdtrue.
C. Hypothesesdmustdbedstateddindadformdthatdassumesdtheydaredtrue,duntildevidencedthatdisdnot
dsupportivedrejectsdthem.
D. Alldtheoriesdaredfalseduntildtheydaredproveddtodbedtrue.
12. Whichdofdthedfollowingdstatementsdbestdexplainsdthedroledofdlogicdindadtheoreticaldargument?
A. Asdlongdasdthedpremisesdofdandargumentdfollowdlogicallydfromdonedtodthedother,dthedconclusio
dwilldbedcorrect.
B. Adconclusiondcandonlydbedtruedtodthedextentdthatdwedacceptdthatdthedpremisesdondwhichditdis
dbaseddaredtrue.
C. Argumentsdcannotdbedrejecteddondthedbasisdofdobservation;donlydondwhetherdtheydaredlogical
dnot.
D. Alldtheoriesdanddtheirdargumentsdmustdcorresponddwithdactualdobservationdofdcurrent
,ACCTd1080dFAT-Test-Bank
practices,dordreal-worlddphenomena,dtodbedlogical.
13. Thedfailuredofdadparticulardstudydtodsupportdadtheory:
A. Providesdthedbasisdfordrejectingdthedtheorydasduselessdordinsignificant
B. Meansdthatdthedparticulardstudydmustdhavedflawsdinditsddesigndordexecutiondindspecifyingdand
dcollectingdtheddata
C. Threatensdthedtheory,difdrepeateddordmoredrefineddstudiesdfaildtodsupportditdwithdempirical
devidence
D. Meansdthatdthedhypothesisdwasdtoodbroad,dandddiddnotdspecifydthedparticulardcircumstancesdan
dconditionsdindenoughddetail
14. Whichdofdthedfollowingdstatementsdisdcorrectdaboutdgeneralisingdthedfindingsdofdadstudydtodthe
dgeneraldpopulation,dbaseddondparticulardsamples?
A. Itdisdnotdpossibledtodmakedgeneralisationsdunlessdyoudstudydthedentiredpopulation.
B. Itdisdpossibledtodmakedgeneralisationsdasdlongdasdthedsampledisdrepresentativedofdthe
dpopulation.
C. Itdisdpossibledtodmakedgeneralisationsdasdlongdasdthedsampledincludesdatdleastd50dperdcentdofdthe
dpopulation.
D. Itdisdpossibledtodmakedgeneralisationsdifdthedsampledisdrepresentative,dandditsdsizedallows
dstatisticaldinferencesdtodbedmade.
15. Indevaluatingdvariousdresearchdstudies,ditdisdimportantdtodfirstdconsider:
A. Thedlogicdofdthedargumentdanddhowditdisdtested
B. Thedlogicdofdthedargumentdanddthedassumptionsdondwhichditdisdbased
C. Thedpurposedofdthedstudydanddthedtypedofdtheorydondwhichditdisdbased
D. Whetherdtheddatadcollecteddrepresentsdadvaliddmeasuredofdthedtheoreticaldvariablesdindquestio
16. Theoriesdanddmodelsdindthedsocialdsciencesddifferdfromdtheoriesdindthedpuredsciencesdbecause:
A. Theoriesdaboutdhumandbehaviourdcannotdbedexpecteddtodapplydalldthedtime,dlikedsomednatural
dsciencedtheories.
B. Adnumberdofdtheoriesdmaydbedavailabledtoddescribe,dordprovidedaddifferentdperspectivedon,da
dparticulardphenomenon.
C. Notdalldtheoriesdindsocialdsciencedhavedpredictionsdthatdcandbedtested.
D. Alldofdthedgivendoptionsdaredcorrect.
17. Thedsequentialdstagesdofdinductivedreasoningdare:
A. Principles,dobjectives,dassumptionsdanddpractice
B. Practice,dprinciples,dassumptionsdanddobjectives
C. Objectives,dassumptions,dprinciplesdandddefinitions
D. Assumptions,dobjectives,dprinciplesdandddefinitions
18. Whichdofdthedfollowingdtermsddescribesdadrelationshipdthatdisdargueddfromdthedspecificd(or
dparticular)dtodthedgeneral?
, ACCTd1080dFAT-Test-Bank
A. Scientificdreasoning
B. Inductivedreasoning
C. Deductivedreasoning
D. Logicaldreasoning
19. Whichdofdthedfollowingdisdandexampledofdaddominantdparadigmdindaccountingdpriordtod1960?
A. Currentdcostdaccounting
B. Conceptualdframeworkdofdaccounting
C. Historicaldcostdaccounting
D. Continuouslydcontemporarydaccounting
20. Whatdisdaddeductivedtheorydordargumentdjudgeddby?
A. Logicdanddassumptions
B. Observabledreal-worlddphenomena
C. Empiricaldevidencedofdrelevantddatadtodtestdthedtheory
D. Alldofdthedgivendoptionsdaredcorrect.
21. Andinductivedtheorydordargument:
A. Reliesdondobservationdofdreal-worlddphenomena
B. Establishesditsdtruthdordfalsitydbydcollectingdobjectivedempiricaldevidence
C. Arguesdfromdthedspecificdtodformdgeneralisations
D. Alldofdthedgivendoptionsdaredcorrect.
22. Whichdofdthedfollowingdisdnotdaddescriptiondofdadparadigm?
A. Itdisdadmodeldfordthedformulationdanddresolutiondofdresearchdproblems.
B. Itdisdadschooldofdthoughtdordadprincipledbydwhichdadgroupdofdresearchersdoperate.
C. Itdisdadcollectiondofdunrelateddtheories.
D. Itdoffersdadsystematicdapproachdtodraisedquestionsdanddtodframedanswers.
23. Thedsequentialdstagesdofddeductivedreasoningdare:
A. Principles,dobjectives,dassumptionsdanddpractice
B. Practice,dprinciples,dassumptionsdanddobjectives
C. Objectives,dassumptions,dprinciplesdandddefinitions
D. Assumptions,dobjectives,dprinciplesdandddefinitions
24. Alldliabilitydaccountsdhavedcreditdbalances.dThedaccountsdreceivabledaccountdisdadliabilitydacc
ount.dTherefore,dthedaccountsdreceivabledaccountdhasdadcreditdbalance.dWhichdofdthedfollowingdst
atementsdisdcorrectdwithdrespectdtodthedabovedargument?
A. Thedargumentdfollowsdadlogicaldanddcleardreasoning.
B. Thedargumentdisdillogical.
C. Thedconclusiondreacheddisdclearlydtrue.
D. Thedclassificationdofdaccountsdreceivabledisdconsistentdwithdthedobserveddclassificationdof
dreceivables.
Chapterd1d–
dIntroductiondtodfinancialdaccountingdtheorydTopicd1
1. Whichdofdthedfollowingdisdtruedaboutdtheoriesdindgeneral?
A. Theoriesdcandincludedanydcoherentdsetdofdideasdordstatementsdtodexplain,dordprovidedguidance
drespectdof,dcertaindphenomena.
B. Theoriesdmustdbedempiricallydbaseddtoddescribedwhatdis,dratherdthandwhatdshoulddbe.
C. Theoriesdmustdbedbaseddondinductivedreasoningdtodprovidedadgeneralisationdordprediction.
D. Alldofdthedgivendoptionsdaredcorrect.
2. AccordingdtodThoulessd(1974),dthed'tricks'dsomedwritersdoftendusedtoddistractdreadersdfrom
dlimitationsdindthedlogicdofdandargumentdordtheorydare:
A. Usingdemotionally-toneddwords
B. Evasiondofdadsounddrefutationdofdandargumentdbydusedofdadsophisticateddformula
C. Changingdthedmeaningdofdadtermdduringdthedcoursedofdandargument
D. Alldofdthedgivendoptionsdaredcorrect.
3. Normativedaccountingdtheoriesdanddresearchdseekdto:
A. Explaindanddpredictdparticulardphenomenadbaseddondobservation
B. Prescribedparticulardapproachesdnotddrivendbydexistingdpractices
C. Describedwhatdisdnormal,dordgenerallydaccepted,dpractice
D. Alldofdthedgivendoptionsdaredcorrect.
4. Adtheorydthatdpredictsdthat,difdcertaindconditionsdaredmetdthendparticulardaccountingdpractices
dwilldbedobserved,disdandexampledof:
A. PositivedAccountingdTheory
B. NegativedAccountingdTheory
C. NormativedAccountingdTheory
D. DescriptivedAccountingdTheory
5. WhichdofdthedfollowingdisdnotdassumeddindPositivedAccountingdTheory?
A. Individualsd(includingdmanagers)daredeconomicallydrationaldindtheirdbehaviour.
B. Individualsd(includingdmanagers)daredprimarilydmotivateddbydself-interest.
C. Thednaturaldobjectivedofdmanagersdisdtodmaximisedthedwealthdofdthedfirm.
D. Managersdarednotdindifferentdindselectingdaccountingdmethodsdtoduse.
6. Adtheoryd(ordmodel)dthatdstatesdthatdthedmostdusefuldinformationdfordeconomicddecisiondmakin
disdthedcurrentdcashdequivalents,dasdmeasureddbydthedcurrentdnetdmarketdvalues,dis:
A. CurrentdPricedAccounting
B. ContinuouslydContemporarydAccountingdTheory
C. CurrentdCostdAccountingdTheory
D. ReplacementdValuedAccountingdTheory
,ACCTd1080dFAT-Test-Bank
7. OnedcriticismdofdPositivedAccountingdTheorydisdthatditdtellsdusdnothingdabout:
A. Whetherdthedpracticedordmethoddbeingduseddisdthedmostdefficient
B. Whetherdthedpracticedordmethoddbeingduseddisdthedmostdequitable
C. Whichdmethoddadfirmdshouldduse
D. Alldofdthedgivendoptionsdaredcorrect.
8. Whichdofdthedfollowingdisdnotdandexampledofdadnormativedaccountingdtheorydordresearch?
A. Conceptualdframeworksdofdaccounting
B. Criticaldperspectivesdofdaccountingdpractice
C. Capitaldmarkets-basedd(securitydprice)dresearch
D. Truedincomedtheories
9. Indevaluatingdtheoriesdofdaccounting,dwhichdofdthedfollowingdisdnotdtrue?
A. Differentdtheoriesdaredoftendthedresultdofdworkingdinddifferentdparadigms,dwhichdprovide
dgreatlyddifferentdperspectives.
B. PositivedAccountingdTheorydisdandexampledofdadtheorydthatdisdvaluedfree.
C. Selectingdadtheory,dtopic,ddesigndordmethoddfordresearchdisdbaseddondvaluedjudgements.
D. Alldtheoriesdofdaccounting,danddassumptionsdondwhichdtheydaredbased,daredabstractionsdof
dreality,danddsodchoicedisdbaseddondhowdcloselydthedtheorydfitsdourdowndperceptions.
10. Whichdofdthedfollowingdstatementsdisdtruedaboutdprovingdadtheory?
A. AndaccepteddPositivedAccountingdTheorydpurportsdtodprovidedsounddpredictionsdthedmajority
dthedtime.
B. AndaccepteddPositivedAccountingdTheorydthatdpurportsdtodexplaindanddpredict,dmustdholddtrue
dalldcases.
C. AdPositivedAccountingdTheoryddoesdnotdneeddtodbedtesteddordproven.
D. AndaccepteddPositivedAccountingdTheorydhasdnod'exceptionsdtodthedrule'.
11. Whichdofdthedfollowingdstatementsdalignsdwithdthedviewsdofd'Falsificationists',dsuchdasdPopper
danddothers?
A. Hypothesesdaredproposeddbydguessing,dwithoutdguidancedfromdexistingdtheories.
B. Itdisdpossibledtodstatedthatdadtheorydisdtrue.
C. Hypothesesdmustdbedstateddindadformdthatdassumesdtheydaredtrue,duntildevidencedthatdisdnot
dsupportivedrejectsdthem.
D. Alldtheoriesdaredfalseduntildtheydaredproveddtodbedtrue.
12. Whichdofdthedfollowingdstatementsdbestdexplainsdthedroledofdlogicdindadtheoreticaldargument?
A. Asdlongdasdthedpremisesdofdandargumentdfollowdlogicallydfromdonedtodthedother,dthedconclusio
dwilldbedcorrect.
B. Adconclusiondcandonlydbedtruedtodthedextentdthatdwedacceptdthatdthedpremisesdondwhichditdis
dbaseddaredtrue.
C. Argumentsdcannotdbedrejecteddondthedbasisdofdobservation;donlydondwhetherdtheydaredlogical
dnot.
D. Alldtheoriesdanddtheirdargumentsdmustdcorresponddwithdactualdobservationdofdcurrent
,ACCTd1080dFAT-Test-Bank
practices,dordreal-worlddphenomena,dtodbedlogical.
13. Thedfailuredofdadparticulardstudydtodsupportdadtheory:
A. Providesdthedbasisdfordrejectingdthedtheorydasduselessdordinsignificant
B. Meansdthatdthedparticulardstudydmustdhavedflawsdinditsddesigndordexecutiondindspecifyingdand
dcollectingdtheddata
C. Threatensdthedtheory,difdrepeateddordmoredrefineddstudiesdfaildtodsupportditdwithdempirical
devidence
D. Meansdthatdthedhypothesisdwasdtoodbroad,dandddiddnotdspecifydthedparticulardcircumstancesdan
dconditionsdindenoughddetail
14. Whichdofdthedfollowingdstatementsdisdcorrectdaboutdgeneralisingdthedfindingsdofdadstudydtodthe
dgeneraldpopulation,dbaseddondparticulardsamples?
A. Itdisdnotdpossibledtodmakedgeneralisationsdunlessdyoudstudydthedentiredpopulation.
B. Itdisdpossibledtodmakedgeneralisationsdasdlongdasdthedsampledisdrepresentativedofdthe
dpopulation.
C. Itdisdpossibledtodmakedgeneralisationsdasdlongdasdthedsampledincludesdatdleastd50dperdcentdofdthe
dpopulation.
D. Itdisdpossibledtodmakedgeneralisationsdifdthedsampledisdrepresentative,dandditsdsizedallows
dstatisticaldinferencesdtodbedmade.
15. Indevaluatingdvariousdresearchdstudies,ditdisdimportantdtodfirstdconsider:
A. Thedlogicdofdthedargumentdanddhowditdisdtested
B. Thedlogicdofdthedargumentdanddthedassumptionsdondwhichditdisdbased
C. Thedpurposedofdthedstudydanddthedtypedofdtheorydondwhichditdisdbased
D. Whetherdtheddatadcollecteddrepresentsdadvaliddmeasuredofdthedtheoreticaldvariablesdindquestio
16. Theoriesdanddmodelsdindthedsocialdsciencesddifferdfromdtheoriesdindthedpuredsciencesdbecause:
A. Theoriesdaboutdhumandbehaviourdcannotdbedexpecteddtodapplydalldthedtime,dlikedsomednatural
dsciencedtheories.
B. Adnumberdofdtheoriesdmaydbedavailabledtoddescribe,dordprovidedaddifferentdperspectivedon,da
dparticulardphenomenon.
C. Notdalldtheoriesdindsocialdsciencedhavedpredictionsdthatdcandbedtested.
D. Alldofdthedgivendoptionsdaredcorrect.
17. Thedsequentialdstagesdofdinductivedreasoningdare:
A. Principles,dobjectives,dassumptionsdanddpractice
B. Practice,dprinciples,dassumptionsdanddobjectives
C. Objectives,dassumptions,dprinciplesdandddefinitions
D. Assumptions,dobjectives,dprinciplesdandddefinitions
18. Whichdofdthedfollowingdtermsddescribesdadrelationshipdthatdisdargueddfromdthedspecificd(or
dparticular)dtodthedgeneral?
, ACCTd1080dFAT-Test-Bank
A. Scientificdreasoning
B. Inductivedreasoning
C. Deductivedreasoning
D. Logicaldreasoning
19. Whichdofdthedfollowingdisdandexampledofdaddominantdparadigmdindaccountingdpriordtod1960?
A. Currentdcostdaccounting
B. Conceptualdframeworkdofdaccounting
C. Historicaldcostdaccounting
D. Continuouslydcontemporarydaccounting
20. Whatdisdaddeductivedtheorydordargumentdjudgeddby?
A. Logicdanddassumptions
B. Observabledreal-worlddphenomena
C. Empiricaldevidencedofdrelevantddatadtodtestdthedtheory
D. Alldofdthedgivendoptionsdaredcorrect.
21. Andinductivedtheorydordargument:
A. Reliesdondobservationdofdreal-worlddphenomena
B. Establishesditsdtruthdordfalsitydbydcollectingdobjectivedempiricaldevidence
C. Arguesdfromdthedspecificdtodformdgeneralisations
D. Alldofdthedgivendoptionsdaredcorrect.
22. Whichdofdthedfollowingdisdnotdaddescriptiondofdadparadigm?
A. Itdisdadmodeldfordthedformulationdanddresolutiondofdresearchdproblems.
B. Itdisdadschooldofdthoughtdordadprincipledbydwhichdadgroupdofdresearchersdoperate.
C. Itdisdadcollectiondofdunrelateddtheories.
D. Itdoffersdadsystematicdapproachdtodraisedquestionsdanddtodframedanswers.
23. Thedsequentialdstagesdofddeductivedreasoningdare:
A. Principles,dobjectives,dassumptionsdanddpractice
B. Practice,dprinciples,dassumptionsdanddobjectives
C. Objectives,dassumptions,dprinciplesdandddefinitions
D. Assumptions,dobjectives,dprinciplesdandddefinitions
24. Alldliabilitydaccountsdhavedcreditdbalances.dThedaccountsdreceivabledaccountdisdadliabilitydacc
ount.dTherefore,dthedaccountsdreceivabledaccountdhasdadcreditdbalance.dWhichdofdthedfollowingdst
atementsdisdcorrectdwithdrespectdtodthedabovedargument?
A. Thedargumentdfollowsdadlogicaldanddcleardreasoning.
B. Thedargumentdisdillogical.
C. Thedconclusiondreacheddisdclearlydtrue.
D. Thedclassificationdofdaccountsdreceivabledisdconsistentdwithdthedobserveddclassificationdof
dreceivables.
