TEST BANK FOR ACCOUNTING THEORY CONCEPTUAL ISSUE IN A POLITICAL AND ECONOMIC ENVIRONMENT 9TH EDITION BY HARRY. I WALK, JAMES L. DADD ALL 17 CHAPTERS COVERED ISBN:9781483375045

Test Bank Accounting Theory:
Conceptual Issues In A Political And
Economic Environment 9th Edition By
Harry I. Wolk, James L. Dodd & John J.
Rozycki| 100% Verified Answers| A+ Grade




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, Chapter 1—AN INTRODUCTION TO ACCOUNTING THEORY
TRUE/FALSE QUESTIONS
1. Financial Accounting Refers To Accounting Information That Is Used By Management For Decision- Making

Purposes. ANSWER: False



2. Accounting Theory Includes The Basic Rules, Definitions, And Principles That Underlie The Drafting Of
Accounting Standards And How They Are Derived.

ANSWER: True



3. Accounting Theory Includes Conceptual Frameworks, Accounting Legislation, Valuation Models, And
Hypotheses And Theories.

ANSWER: True



4. Hypotheses And Theories Are Based On An Informal Method Of

Investigation. ANSWER: False



5. Replacement Cost As A Measure Of Asset Value Is Generally More Reliable Than

Historical Cost. ANSWER: False



6. Accounting Theory Is Developed And Refined By The Process Of Accounting

Research. ANSWER: True



7. Indirect Measures Are Usually Preferable To Direct Measures Because They Are Less Costly To

Obtain. ANSWER: False



8. Assessment Measures Are Concerned With Particular Attributes Of Objects And Are Always Direct

Measurements. ANSWER: False



9. When A Direct Assessment Measure Is Used, There Is Always Only One Correct

Measure. ANSWER: False




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,10. The Simplest Type Of Measuring System Is The Nominal

Scale. ANSWER: True



11. A Chart Of Accounts Is An Example Of An Ordinal

Classification. ANSWER: False



12. Numerals Assigned In Ordinal Rankings Indicate An Order Of Preference Where The Degree Of Preference
Among Ranks Is The Same.

ANSWER: False



13. In A Ratio Scale, The Zero Point Implies "Nothingness," Or The Absence Of The Quality Being

Measured. ANSWER: True



14. Using Ratio Scale Measurement Is Possible In

Accounting. ANSWER: True



15. Objectivity May Be Defined As The Degree Of Consensus Among

Measurers. ANSWER: True



16. Assessment Measures Are Not Concerned With Particular Attributes Of

Objects. ANSWER: False



17. Prediction Measures Are Concerned With Factors That May Be Indicative Of Future

Conditions. ANSWER: True



18. Timeliness And Cost Are Pertinent To Assessment Measures But Are Not Pertinent To Prediction

Measures. ANSWER: False



19. All Accounting Measurements Are Of Either The Assessment Or The Prediction

Variety. ANSWER: True



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, 20. The Need For Information On A Timely Basis May Conflict With Cost Constraints In Some

Situations. ANSWER: True



21. The Terms Calculation And Measurement Both Refer To The Valuation Of A Real Phenomena Or

Attribute. ANSWER: False



22. Calculations Attempt To Simulate Or Come As Close As Possible To The Measurement Of Real
Phenomena Or Attributes.

ANSWER: False



23. FIFO And LIFO Measures Of Cost Of Goods Sold And Inventories Are Examples Of Calculations
Rather Than Measurements.

ANSWER: True



24. There Are Often Trade-Offs Between Objectivity And The Usefulness Of Numbers Generated By The
Measurement Process.

ANSWER: True



25. Measurement Is An Integral Part Of Accounting

Theory. ANSWER: True



26. Throughout The Financial History Of The United States, Current Value Has Been The Accepted Valuation
System For Published Financial Statements.

ANSWER: False



27. The Discounted Cash Flow Approach Can Be Used To Determine An Objective Measurement For Most
Assets And Liabilities.

ANSWER: False



28. A General Price-Level Adjustment Refers To The Purchasing Power Of The Monetary Unitary Unit Relative To
All Goods And Services In The Economy.

ANSWER: True




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