Accounting Theory Conceptual Issues In A Political And Economic Environment 9th Edition Harry I. -James L. - Test Bank

Financial accounting refers to accounting information that is used by management for decision-making purposes.

ANSWER:       F

  2.   Accounting theory includes the basic rules, definitions, and principles that underlie the drafting of accounting standards and how they are derived.

ANSWER:       T

  3.   Accounting theory includes conceptual frameworks, accounting legislation, valuation models, and hypotheses and theories.

ANSWER:       T

  4.   Hypotheses and theories are based on an informal method of investigation.

ANSWER:       F

  5.   Replacement cost as a measure of asset value is generally more reliable than historical cost.

ANSWER:       F

  6.   Accounting theory is developed and refined by the process of accounting research.

ANSWER:       T

  7.   Indirect measures are usually preferable to direct measures because they are less costly to obtain.

ANSWER:       F

  8.   Assessment measures are concerned with particular attributes of objects and are always direct measurements.

ANSWER:       F

  9.   When a direct assessment measure is used, there is always only one correct measure.

ANSWER:       F

10.   The simplest type of measuring system is the nominal scale.

ANSWER:       T

11.   A chart of accounts is an example of an ordinal classification.

ANSWER:       F