Watts and zimmerman’s positive accounting theory

1. Watts and Zimmerman’s Positive Accounting Theory is:
A. One of several normative theories of accounting
B. One of several positive theories of accounting
C. One of several critical theories of accounting
D. None of the given options is correct

2. The key theory that underpins Positive Accounting Theory is:
A. The Efficient Markets Hypothesis
B. Agency theory
C. Normative ethical theory
D. None of the given options is correct

3. The principal’s expectation of opportunistic behaviour by his or her agent results
in lower payments to:
A. The agent
B. The principal
C. The principal and the agent
D. Neither the principal nor the agent

4. The ‘political cost hypothesis’ of Positive Accounting Theory suggests that:
A. Large firms are more likely to use accounting choices that reduce reported profits
B. Small firms are more likely to use accounting choices that reduce reported profits
C. Neither large nor small firms are more likely to use accounting choices that reduce
reported profits
D. Both large and small firms are more likely to use accounting choices that reduce
reported profits
5. The ‘bonus plan hypothesis’ of Positive Accounting Theory suggests managers of
firms with bonus plans tied to reported income are more likely to use accounting
methods that:
A. Increase prior period reported income
B. Increase current period reported income
C. Increase future period reported income
D. None of the given options is correct

6. The ‘debt/equity hypothesis’ of Positive Accounting Theory predicts that:
A. The higher the firm’s debt/equity ratio, the more likely managers are to use
accounting methods that lower income
B. The lower the firm’s debt/equity ratio, the more likely managers are to use
accounting methods that increase income
C. The higher the firm’s debt/equity ratio, the more likely managers are to use
accounting methods that increase income
D. None of the given options is correct

7. Critical researchers accuse financial accounting of:
A. Being open to manipulation by self-interested managers
B. Reinforcing unequal distributions of wealth and power
C. Being irrelevant to management decision-making

D. Poorly predicting stock prices

8. ‘Social Praxis’ in the context of critical theory means that
A. Theory influences practice
B. Practice influences theory
C. Theory influences practice, while practice influences theory
D. Theory does not influence practice, and practice does not influence theory

9. Critical accounting researchers have criticised other social and
environmental accounting researchers for:
A. Lacking objectivity
B. Being too radical and unrealistic
C. Leaving existing social structures unchallenged
D. Ignoring the findings of empirical accounting research

10. Which theoretical perspectives have been utilised by critical researchers?
A. Marxism
B. Deep ecology
C. Radical feminism
D. All of the given options are correct

11. Broadly speaking, critical researchers have been:
A. Successful in identifying problems in accounting practices, but unsuccessful in
changing practices
B. Successful in exposing problems in accounting practices, and successful in
changing practices
C. Unsuccessful in exposing problems in accounting practices, but successful in
changing practices
D. Unsuccessful in exposing problems in accounting practices, and unsuccessful in
changing practices

12. Critical researchers interpret the Australian accounting bodies’ opposition to
mandatory corporate social and environmental reporting as evidence that the
accounting profession:
A. Is legitimately concerned with introducing unnecessary regulation
B. Does not believe mandatory reporting would enhance corporate accountability
C. Does not believe shareholders and the public support mandatory reporting
D. Promotes the interests of business above the interests of other stakeholders

13. Critical researchers believe that accountants are:
A. Complicit in the exploitation of citizens
B. Resistant to the exploitation of citizens
C. Irrelevant to the exploitation of citizens
D. Exploited by citizens

14. Critical researchers believe that regulation of corporations is ineffective
because the government:
A. Is weak and powerless
B. Is deceived by corporations
C. Favours the rich
D. Does not believe that more effective social and environmental legislation is







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10