Test Bank for Accounting Theory, Conceptual Issues in a Political and Economic Environment 8th Edition Harry Wolk James (2025).

Accounting .Theory: .8th Page .1 .of
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,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.


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

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.


Accounting .Theory: .8th Page .2 .of
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, ANSWER: .False




Accounting .Theory: .8th Page .3 .of
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, 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

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

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




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