Contemporary Issues in
Accounting 3rd Edition
ST
TEST BANK
UV
IA
_A
Michaela Rankin
Kimberly Ferlauto
Susan McGowan
PP
Patricia Stanton
────────────────────────────────────────────────────
RO
Comprehensive Test Bank for Instructors
VE
and Students
D
© Michaela Rankin, Kimberly Ferlauto, Susan McGowan & Patricia Stanton.
All rights reserved. Reproduction or distribution without permission is prohibited.
?
© BooksbyMed
, Test Bank for Contemporary Issues in Accounting (3rd Edition)
Michaela Rankin · Kimberly Ferlauto · Susan McGowan · Patricia Stanton
ISBN: 9780730397823
Chapter 1. Contemporary Issues in Accounting
Chapter 2. Standard Setting
ST
Chapter 3. Measurement
Chapter 4. Theories in Accounting
Chapter 5. The Conceptual Framework for Financial Reporting
UV
Chapter 6. Corporate Governance
Chapter 7. Technology in Accounting
Chapter 8. Capital Market Research and Accounting
Chapter 9. Earnings Management
IA
Chapter 10. Sustainability and Corporate Social Responsibility
Chapter 11. International Accounting
Chapter 12. Fair Value Accounting
_A
Chapter 13. Products of the Accounting System
PP
RO
VE
D ?
© BooksbyMed
, Chapter 1: Contemporary issues in accounting
Chapter 1: Contemporary issues in accounting
Multiple choice questions
1. Which of the following statements is true?
a. Accounting is a precise uncontested technical exercise like other 'hard' sciences.
ST
*b. Financial accounting is principles based and the application of appropriate accounting and
reporting requires professional judgement.
c. Globalisation of business and recent corporate failures have motivated the move away from
international accounting standards.
UV
d. The nature of accounting has changed, and technology has made the traditional debit and
credit rules obsolete.
General Feedback:
Learning objective 1.1 Evaluate the nature of accounting and the changing role of accountants.
IA
2. Which of the following statements best describes the changing role of the accountant?
_A
a. Increased regulation means accountants' tasks are becoming more technical and procedural.
b. Recent accounting failures and the recent global financial crisis has led to a narrowing of the
role of accountants.
*c. Several external factors including rapid changes in economic activities, societal expectations
and developments in technology, are driving the change.
PP
d. The digitisation and move towards non-traditional transactions like carbon pricing and digital
currencies, means there are fewer tasks for accountants.
General Feedback:
RO
Learning objective 1.1 Evaluate the nature of accounting and the changing role of accountants.
3. Accounting theory can be described as:
VE
a. being based only on observations.
*b. description, explanation or prediction of accounting practice based on observations and/or
logical reasoning.
c. a set of facts, specific in nature, against which accounting practice can be evaluated.
D?
d. being irrelevant to the development of new practice and procedures.
General Feedback:
objective 1.2 Define 'theory'.
4. Which of the following statements is correct in relation to the purpose of theory?
© John Wiley and Sons Australia, Ltd 2022 1.2
, Testbank to accompany Contemporary Issues in Accounting 3e by Rankin et al. Not for distribution in full. Instructors may
post selected solutions for questions assigned as homework to their LMS.
*a. Some theories explain, some describe what is happening, while others predict or make
suggestions.
b. All theories do the same thing.
c. Theories dictate what action must be taken.
d. Theories only make predictions about what might happen in the future.
ST
General Feedback:
objective 1.2 Define 'theory'.
UV
5. An example of how theory can predict accounting practice is:
*a. agency theory.
b. capital market theory.
c. asset recognition theory.
IA
d. corporate social responsibility theory.
_A
General Feedback:
Learning objective 1.3 Evaluate why theory is needed to understand accounting practice
6. Is it possible to have different theories on the same topic?
PP
a. Yes, but there is usually only one explanation and/or solution.
b. No, it is impossible to have alternative theories on a topic.
*c. Yes, there are often many alternative theories on a topic because there are usually many
RO
possible explanations and/or recommendations.
d. No, there can only ever be one explanation or solution.
General Feedback:
objective 1.3 Evaluate why theory is needed to understand accounting practice
VE
7. A theory about the causes of financial reporting failures, like Enron, is best described as a theory that:
*a. describes and explains current accounting practice
D?
b. makes suggestions of ways to improve accounting practice
b. predicts accounting practice and choices that will be made
c. prescribes or provides principles that should be followed
General Feedback:
Learning objective 1.3 Evaluate why theory is needed to understand accounting practice
© John Wiley and Sons Australia, Ltd 2022 1.3
Accounting 3rd Edition
ST
TEST BANK
UV
IA
_A
Michaela Rankin
Kimberly Ferlauto
Susan McGowan
PP
Patricia Stanton
────────────────────────────────────────────────────
RO
Comprehensive Test Bank for Instructors
VE
and Students
D
© Michaela Rankin, Kimberly Ferlauto, Susan McGowan & Patricia Stanton.
All rights reserved. Reproduction or distribution without permission is prohibited.
?
© BooksbyMed
, Test Bank for Contemporary Issues in Accounting (3rd Edition)
Michaela Rankin · Kimberly Ferlauto · Susan McGowan · Patricia Stanton
ISBN: 9780730397823
Chapter 1. Contemporary Issues in Accounting
Chapter 2. Standard Setting
ST
Chapter 3. Measurement
Chapter 4. Theories in Accounting
Chapter 5. The Conceptual Framework for Financial Reporting
UV
Chapter 6. Corporate Governance
Chapter 7. Technology in Accounting
Chapter 8. Capital Market Research and Accounting
Chapter 9. Earnings Management
IA
Chapter 10. Sustainability and Corporate Social Responsibility
Chapter 11. International Accounting
Chapter 12. Fair Value Accounting
_A
Chapter 13. Products of the Accounting System
PP
RO
VE
D ?
© BooksbyMed
, Chapter 1: Contemporary issues in accounting
Chapter 1: Contemporary issues in accounting
Multiple choice questions
1. Which of the following statements is true?
a. Accounting is a precise uncontested technical exercise like other 'hard' sciences.
ST
*b. Financial accounting is principles based and the application of appropriate accounting and
reporting requires professional judgement.
c. Globalisation of business and recent corporate failures have motivated the move away from
international accounting standards.
UV
d. The nature of accounting has changed, and technology has made the traditional debit and
credit rules obsolete.
General Feedback:
Learning objective 1.1 Evaluate the nature of accounting and the changing role of accountants.
IA
2. Which of the following statements best describes the changing role of the accountant?
_A
a. Increased regulation means accountants' tasks are becoming more technical and procedural.
b. Recent accounting failures and the recent global financial crisis has led to a narrowing of the
role of accountants.
*c. Several external factors including rapid changes in economic activities, societal expectations
and developments in technology, are driving the change.
PP
d. The digitisation and move towards non-traditional transactions like carbon pricing and digital
currencies, means there are fewer tasks for accountants.
General Feedback:
RO
Learning objective 1.1 Evaluate the nature of accounting and the changing role of accountants.
3. Accounting theory can be described as:
VE
a. being based only on observations.
*b. description, explanation or prediction of accounting practice based on observations and/or
logical reasoning.
c. a set of facts, specific in nature, against which accounting practice can be evaluated.
D?
d. being irrelevant to the development of new practice and procedures.
General Feedback:
objective 1.2 Define 'theory'.
4. Which of the following statements is correct in relation to the purpose of theory?
© John Wiley and Sons Australia, Ltd 2022 1.2
, Testbank to accompany Contemporary Issues in Accounting 3e by Rankin et al. Not for distribution in full. Instructors may
post selected solutions for questions assigned as homework to their LMS.
*a. Some theories explain, some describe what is happening, while others predict or make
suggestions.
b. All theories do the same thing.
c. Theories dictate what action must be taken.
d. Theories only make predictions about what might happen in the future.
ST
General Feedback:
objective 1.2 Define 'theory'.
UV
5. An example of how theory can predict accounting practice is:
*a. agency theory.
b. capital market theory.
c. asset recognition theory.
IA
d. corporate social responsibility theory.
_A
General Feedback:
Learning objective 1.3 Evaluate why theory is needed to understand accounting practice
6. Is it possible to have different theories on the same topic?
PP
a. Yes, but there is usually only one explanation and/or solution.
b. No, it is impossible to have alternative theories on a topic.
*c. Yes, there are often many alternative theories on a topic because there are usually many
RO
possible explanations and/or recommendations.
d. No, there can only ever be one explanation or solution.
General Feedback:
objective 1.3 Evaluate why theory is needed to understand accounting practice
VE
7. A theory about the causes of financial reporting failures, like Enron, is best described as a theory that:
*a. describes and explains current accounting practice
D?
b. makes suggestions of ways to improve accounting practice
b. predicts accounting practice and choices that will be made
c. prescribes or provides principles that should be followed
General Feedback:
Learning objective 1.3 Evaluate why theory is needed to understand accounting practice
© John Wiley and Sons Australia, Ltd 2022 1.3
