Accounting Theory: Conceptual
Issues in a Political and Economic
ST
Environment – 8th Edition
UV
TEST BANK
IA
?_
AP
Harry Wolk
James Dodd
PR
John Rozycki
OV
Comprehensive Test Bank for Instructors
and Students
ED
© Harry Wolk, James Dodd & John Rozycki. All rights reserved. Reproduction or
??
distribution without permission is prohibited.
©MEDCONNOISSEUR
, Table of Contents
Test Bank for Accounting Theory: Conceptual Issues in a Political and
Economic Environment (8th Edition)
Authors: Harry Wolk, James Dodd, John Rozycki
ISBN: 9781506300108
ST
Chapter 1: An Introduction to Accounting Theory
UV
Chapter 2: Accounting Theory and Accounting Research
Chapter 3: Development of the Institutional Structure of Financial Accounting
Chapter 4: The Economics of Financial Reporting Regulation
Chapter 5: Postulates, Principles, and Concepts
Chapter 6: The Search for Objectives
IA
Chapter 7: The FASB's Conceptual Framework
Chapter 8: Usefulness of Accounting Information to Investors and Creditors
Chapter 9: Uniformity and Disclosure: Some Policy-Making Directions
?_
Chapter 10: International Accounting
Chapter 11: The Balance Sheet
Chapter 12: The Income Statement
Chapter 13: Statement of Cash Flows
AP
Chapter 14: Income Taxes and Financial Accounting
Chapter 15: Pensions and Other Postretirement Benefits
Chapter 16: Leases
Chapter 17: Intercorporate Equity Investments
PR
OV
ED
??
©MEDCONNOISSEUR
, Test Bank for Accounting Theory, Conceptual Issues in a Political and Economic Environment
8e Harry Wolk James Dodd John Rozycki
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.
ST
ANSWER: False
2. Accounting theory includes the basic rules, definitions, and principles that underlie the drafting of
accounting standards and how they are derived.
UV
ANSWER: True
3. Accounting theory includes conceptual frameworks, accounting legislation, valuation models,
and hypotheses and theories.
ANSWER: True
IA
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
AP
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.
PR
ANSWER: False
8. Assessment measures are concerned with particular attributes of objects and are always direct
measurements.
OV
ANSWER: False
9. When a direct assessment measure is used, there is always only one correct measure.
ANSWER: False
10. The simplest type of measuring system is the nominal scale.
ED
ANSWER: True
11. A chart of accounts is an example of an ordinal classification.
??
ANSWER: False
Accounting Theory: 8th edition Page 1 of 11
, Chapter 1—AN INTRODUCTION TO ACCOUNTING THEORY
12. Numerals assigned in ordinal rankings indicate an order of preference where the degree of
preference among ranks is the same.
ANSWER: False
ST
13. In a ratio scale, the zero point implies "nothingness," or the absence of the quality being
measured.
ANSWER: True
UV
14. Using ratio scale measurement is possible in accounting.
ANSWER: True
15. Objectivity may be defined as the degree of consensus among measurers.
IA
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.
AP
ANSWER: True
18. Timeliness and cost are pertinent to assessment measures but are not pertinent to prediction
measures.
ANSWER: False
PR
19. All accounting measurements are of either the assessment or the prediction variety.
ANSWER: True
OV
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.
ED
ANSWER: False
22. Calculations attempt to simulate or come as close as possible to the measurement of real
phenomena or attributes.
??
ANSWER: False
Accounting Theory: 8th edition Page 2 of 11
Issues in a Political and Economic
ST
Environment – 8th Edition
UV
TEST BANK
IA
?_
AP
Harry Wolk
James Dodd
PR
John Rozycki
OV
Comprehensive Test Bank for Instructors
and Students
ED
© Harry Wolk, James Dodd & John Rozycki. All rights reserved. Reproduction or
??
distribution without permission is prohibited.
©MEDCONNOISSEUR
, Table of Contents
Test Bank for Accounting Theory: Conceptual Issues in a Political and
Economic Environment (8th Edition)
Authors: Harry Wolk, James Dodd, John Rozycki
ISBN: 9781506300108
ST
Chapter 1: An Introduction to Accounting Theory
UV
Chapter 2: Accounting Theory and Accounting Research
Chapter 3: Development of the Institutional Structure of Financial Accounting
Chapter 4: The Economics of Financial Reporting Regulation
Chapter 5: Postulates, Principles, and Concepts
Chapter 6: The Search for Objectives
IA
Chapter 7: The FASB's Conceptual Framework
Chapter 8: Usefulness of Accounting Information to Investors and Creditors
Chapter 9: Uniformity and Disclosure: Some Policy-Making Directions
?_
Chapter 10: International Accounting
Chapter 11: The Balance Sheet
Chapter 12: The Income Statement
Chapter 13: Statement of Cash Flows
AP
Chapter 14: Income Taxes and Financial Accounting
Chapter 15: Pensions and Other Postretirement Benefits
Chapter 16: Leases
Chapter 17: Intercorporate Equity Investments
PR
OV
ED
??
©MEDCONNOISSEUR
, Test Bank for Accounting Theory, Conceptual Issues in a Political and Economic Environment
8e Harry Wolk James Dodd John Rozycki
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.
ST
ANSWER: False
2. Accounting theory includes the basic rules, definitions, and principles that underlie the drafting of
accounting standards and how they are derived.
UV
ANSWER: True
3. Accounting theory includes conceptual frameworks, accounting legislation, valuation models,
and hypotheses and theories.
ANSWER: True
IA
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
AP
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.
PR
ANSWER: False
8. Assessment measures are concerned with particular attributes of objects and are always direct
measurements.
OV
ANSWER: False
9. When a direct assessment measure is used, there is always only one correct measure.
ANSWER: False
10. The simplest type of measuring system is the nominal scale.
ED
ANSWER: True
11. A chart of accounts is an example of an ordinal classification.
??
ANSWER: False
Accounting Theory: 8th edition Page 1 of 11
, Chapter 1—AN INTRODUCTION TO ACCOUNTING THEORY
12. Numerals assigned in ordinal rankings indicate an order of preference where the degree of
preference among ranks is the same.
ANSWER: False
ST
13. In a ratio scale, the zero point implies "nothingness," or the absence of the quality being
measured.
ANSWER: True
UV
14. Using ratio scale measurement is possible in accounting.
ANSWER: True
15. Objectivity may be defined as the degree of consensus among measurers.
IA
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.
AP
ANSWER: True
18. Timeliness and cost are pertinent to assessment measures but are not pertinent to prediction
measures.
ANSWER: False
PR
19. All accounting measurements are of either the assessment or the prediction variety.
ANSWER: True
OV
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.
ED
ANSWER: False
22. Calculations attempt to simulate or come as close as possible to the measurement of real
phenomena or attributes.
??
ANSWER: False
Accounting Theory: 8th edition Page 2 of 11
