Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
Test Bank
Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I. Wolk, James L. Dodd & John
J. Rozycki
1
, Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
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
2
, Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
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
3
, Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
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
4
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
Test Bank
Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I. Wolk, James L. Dodd & John
J. Rozycki
1
, Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
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
2
, Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
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
3
, Accounting Theory: Conceptual Issues in a Political and Economic Environment 9th Edition
by Harry I.Wolk,James l.Dodd and Jon J.Rozycki.Newly updated 100% pass.
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
4
