{"id":78337,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/financial-accounting-theory-2"},"modified":"2017-08-18T07:30:24","modified_gmt":"2017-08-18T07:30:24","slug":"financial-accounting-theory-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/financial-accounting-theory-2\/","title":{"rendered":"Financial Accounting Theory"},"content":{"rendered":"<ul>\n<li>Please answer Multiple choice questions<\/li>\n<li>instruction for four essay questions<\/li>\n<\/ul>\n<ol>\n<li><strong>Required reference (this is the main reference for the all questions)<\/strong><\/li>\n<\/ol>\n<p>Deegan, C 2014, <em>Financial Accounting Theory<\/em>, 4thedn, McGraw-Hill, Sydney.<\/p>\n<ol>\n<li><strong>Other references <\/strong><\/li>\n<\/ol>\n<p>Henderson, S., Peirson, G. &amp;Herbohn, K., Issues in Financial Accounting, 14th Edition, (2011) Prentice Hall, Melbourne.<\/p>\n<p>Jones, S., &amp; A.R. Belkaoui, Accounting Theory, 3rd Edition, (2010) Cengage Learning, Melbourne.<\/p>\n<p>Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J. &amp; Holmes, S. &amp;., Accounting Theory, 7th Edition (2010) Wiley &amp; Sons, Melbourne.<\/p>\n<ol>\n<li><strong>Journals: <\/strong><\/li>\n<\/ol>\n<p>Accounting &amp; Finance; Australian Accounting Review; Abacus; Journal of Accounting and Public Policy; Journal of Accounting &amp; Economics; Accounting, Organizations and Society; Accounting Horizons; Accounting, Auditing and Accountability Journal<\/p>\n<ol>\n<li><strong>Any sentence referenced to the the specific law, regulation or theory has to be supported by a definition and explain<\/strong><\/li>\n<li>There is no word limit however the answer should be <strong>above 500 word for each part of any section marked 5,<\/strong> and be above <strong>800 word for each section marked 10<\/strong> , the answer to each section should be supported by examples and theory and law and regulation satisfy the requirements and the allocated mark.<\/li>\n<li>the whole word count should be above 5000 words<\/li>\n<\/ol>\n<p><strong>PART A \u2013 Multiple Choice Questions (1mark x 20 = 20 Marks)<\/strong><\/p>\n<p>This section contains 20 multiple choice questions. Answer all questions.<\/p>\n<ol>\n<li>Critical researchers accuse financial accounting of:<\/li>\n<\/ol>\n<ul>\n<li>Being open to manipulation by self-interested managers.<\/li>\n<li>Reinforcing unequal distributions of wealth and power.<\/li>\n<li>Being irrelevant to management decision-making.<\/li>\n<li>Giving inaccurate predictions of share price movements.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>Critical researchers believe that accounting information:<\/li>\n<\/ol>\n<ul>\n<li>Is neutral and unbiased.<\/li>\n<li>Benefits neither the rich nor poor.<\/li>\n<li>Is used by the elite to maintain their power.<\/li>\n<li>Challenges existing social orders.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li>Critical researchers believe:<\/li>\n<\/ol>\n<ul>\n<li>They are objective and neutral, but that non-critical researchers are biased and partisan.<\/li>\n<li>They are biased and partisan, but that non-critical researchers are objective and neutral.<\/li>\n<li>That both critical and non-critical researchers are objective and neutral.<\/li>\n<li>That both critical and non-critical researchers are biased and partisan.<\/li>\n<\/ul>\n<ol start=\"4\">\n<li>Critical researchers interpret the post-Enron increase in mandatory corporate reporting as primarily benefiting:<\/li>\n<\/ol>\n<ul>\n<li>Society, as corporations are required to improve their level of disclosure.<\/li>\n<li>Corporations, as confidence will be restored to financial markets.<\/li>\n<li>Employees, as fewer companies will go bankrupt.<\/li>\n<li>Accountants, as demand for accounting services, will increase.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ol start=\"5\">\n<li>Behavioural research is concerned with how:<\/li>\n<\/ol>\n<ul>\n<li>Individuals behave when provided with particular items of information.<\/li>\n<li>Individuals should behave when provided with particular items of information.<\/li>\n<li>Firms behave when provided with particular items of information.<\/li>\n<li>Firms should behave when provided with particular items of information.<\/li>\n<\/ul>\n<ol start=\"6\">\n<li>Which of the following statements is true when comparing behavioural research with capital markets research?<\/li>\n<\/ol>\n<ul>\n<li>Both behavioural research and capital markets research assess the aggregate effect of financial reporting.<\/li>\n<li>Both behavioural research and capital markets research analyse individual responses to financial reporting.<\/li>\n<li>Behavioural research analyses individual responses to financial reporting, while capital markets research assesses the aggregate effect of financial reporting.<\/li>\n<li>Capital markets research analyses individual responses to financial reporting, while behavioural research assesses the aggregate effect of financial reporting.<\/li>\n<\/ul>\n<ol start=\"7\">\n<li>Which of the following statements is not true about behavioural research?<\/li>\n<\/ol>\n<ul>\n<li>There can ultimately be a normative component to behavioural research.<\/li>\n<li>Behavioural research can be classified as positive research because it seeks to explain particular actions or behaviours.<\/li>\n<li>Behavioural research is typically grounded in organisational theory and theories from psychology and sociology.<\/li>\n<li>Behavioural research is an example of economics-based theories where assumptions about what motivates human actions are made and such motivations are attributed to all individuals.<\/li>\n<\/ul>\n<ol start=\"8\">\n<li>Capital markets research assumes that markets are:<\/li>\n<\/ol>\n<ul>\n<li>Semi-strong-form efficient<\/li>\n<li>Strong-form efficient<\/li>\n<li>Weak-form efficient<\/li>\n<li>Inefficient<\/li>\n<\/ul>\n<ol start=\"9\">\n<li>Semi-strong-form market efficiency means that the information reflected in security prices is:<\/li>\n<\/ol>\n<ul>\n<li>All publicly available financial information.<\/li>\n<li>All public and private information.<\/li>\n<li>All publicly available information.<\/li>\n<li>All information about past prices and trading volumes.<\/li>\n<\/ul>\n<ol start=\"10\">\n<li>Semi-strong-form market efficiency suggests security prices will change when:<\/li>\n<\/ol>\n<ul>\n<li>Unexpected earnings results are announced.<\/li>\n<li>Earnings results are announced.<\/li>\n<li>Cash flow results are announced.<\/li>\n<li>All of the given options are correct.<\/li>\n<\/ul>\n<ol start=\"11\">\n<li>According to the findings of capital markets research, the existence of post-announcement abnormal returns for a given firm suggests that for firms in the same industry:<\/li>\n<\/ol>\n<ul>\n<li>Subsequent post-announcement abnormal returns will increase.<\/li>\n<li>Subsequent post-announcement abnormal returns will decrease.<\/li>\n<li>There will be no effect on subsequent post-announcement abnormal returns.<\/li>\n<li>It is impossible to predict the effect on subsequent post-announcement abnormal returns.<\/li>\n<\/ul>\n<ol start=\"12\">\n<li>The book value is generally less than the market value of a firm because:<\/li>\n<\/ol>\n<ul>\n<li>Capital markets are not strong-form efficient.<\/li>\n<li>Certain intangibles may not meet the asset recognition criteria.<\/li>\n<li>Assets may be overvalued by unethical managers.<\/li>\n<li>The market values of assets are difficult to measure.<\/li>\n<\/ul>\n<ol start=\"13\">\n<li>Which of the following best describes the view taken by Milton Friedman in relation to the role of companies?<\/li>\n<\/ol>\n<ul>\n<li>Companies are an integral part of society, and as such should adopt the highest ethical principles.<\/li>\n<li>Companies, as part of society, should act in the interests of the harmonisation of society and the environment.<\/li>\n<li>Companies should detach themselves from the environment and focus on maximising the benefits to society.<\/li>\n<li>Companies should distance themselves from the community in which they operate and focus solely on maximising the returns to shareholders.<\/li>\n<\/ul>\n<ol start=\"14\">\n<li>Which of the following statements relating to Stakeholder Theory explain why companies disclose social and environmental information:<\/li>\n<\/ol>\n<ul>\n<li>Disclosures are linked to providing evidence that an entity is complying with the expectations of society.<\/li>\n<li>Disclosure depends on the expectations of powerful stakeholders, if the managerial perspective of Stakeholder Theory is embraced.<\/li>\n<li>Disclosure depends on positive wealth implications.<\/li>\n<li>Organisations will adopt particular practices because of institutional pressures.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ol start=\"15\">\n<li>Empirical findings consistent with Legitimacy Theory would be increased disclosure of:<\/li>\n<\/ol>\n<ul>\n<li>Environmental good news, immediately following prosecutions for breaches of environmental standards.<\/li>\n<li>Environmental bad news, immediately following prosecutions for breaches of environmental standards.<\/li>\n<li>Environmental good news, immediately preceding prosecutions for breaches of environmental standards.<\/li>\n<li>Environmental bad news, immediately preceding prosecutions for breaches of environmental standards.<\/li>\n<\/ul>\n<ol start=\"16\">\n<li>The moral perspective of Stakeholder Theory holds that all stakeholders have the right to be treated fairly by an organisation:<\/li>\n<\/ol>\n<ul>\n<li>Provided this improves the organisation\u2019s financial performance.<\/li>\n<li>Regardless of the impact on the organisation\u2019s financial performance.<\/li>\n<li>Because, in the long run, this will improve the organisation\u2019s financial performance.<\/li>\n<li>Because unfair treatment will result in public backlash.<\/li>\n<\/ul>\n<ol start=\"17\">\n<li>Managerial Stakeholder Theory suggests that annual reports will be used to:<\/li>\n<\/ol>\n<ul>\n<li>Gain the support of powerful stakeholders.<\/li>\n<li>Report on the activities of management with respect to each stakeholder.<\/li>\n<li>Explain why profits may have been sacrificedin order to respect the minimum rights of some stakeholders.<\/li>\n<li>To achieve social legitimacy by explaining how the company upheld the social contract.<\/li>\n<\/ul>\n<ol start=\"18\">\n<li>Institutional Theory suggests which of the following?<\/li>\n<\/ol>\n<ul>\n<li>While organisational structures are initially varied, they are gradually homogenised by competition, the state and professions.<\/li>\n<li>While organisational structures are initially homogenous, they are gradually varied by competition, the State and professions.<\/li>\n<li>The organisational structure is determined by institutional factors such as management style and organisational culture.<\/li>\n<li>The organisational structure is determined by the organisation\u2019s most powerful stakeholders.<\/li>\n<\/ul>\n<ol start=\"19\">\n<li>Which statement describes the relationship between Institutional Theory (IT), Legitimacy Theory (LT) and Stakeholder Theory (ST)?<\/li>\n<\/ol>\n<ul>\n<li>IT is a normative theory while LT and ST are positive theories.<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td>(B)&nbsp;&nbsp; IT is a more detailed version of LT, and is broadly consistent with ST.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>The mechanisms IT suggests firms will use to align the perceptions of their performance with society\u2019s values could include the mechanisms suggested by LT and ST.<\/li>\n<\/ul>\n<ol start=\"20\">\n<li>An organisation disclosing social and environmental information because a competitor was gaining a competitive advantage by doing so, is an example of:<\/li>\n<\/ol>\n<ul>\n<li>Mimetic isomorphism<\/li>\n<li>Coercive isomorphism<\/li>\n<li>Normative isomorphism<\/li>\n<li>Positive isomorphism<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Please answer Multiple choice questions instruction for four essay questions Required reference (this is the main reference for the all questions) Deegan, C 2014, Financial Accounting Theory, 4thedn, McGraw-Hill, Sydney. Other references Henderson, S., Peirson, G. &amp;Herbohn, K., Issues in <a href=\"https:\/\/www.benedictsol.com\/blogs\/financial-accounting-theory-2\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-78337","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/78337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=78337"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/78337\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=78337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=78337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=78337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}