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1. The statement that is not descriptive of positive theories is,
a. They are descriptive rather than prescriptive
b. They avoid making value-laden judgements
c. They explain why people behave in a certain manner
d. Their primary concern is developing policy recommendations for accounting practice

2. Behavioural accounting research is concerned with the broader sociological implications of

accounting numbers. As such it is mainly concerned with the reactions of which of the
following groups to accounting numbers?
a. Auditors and managers
b. Shareholders and government
c. Creditors
d. All of the above

3. Which theory of regulation assumes that politicians are not neutral arbiters?
a. Private-interest theory
b. Public-interest theory
c. Regulatory capture theory
d. All assume that politicians are not neutral arbiters.

4. A disadvantage of rules-based standards for users of the standards is:

a. They may reduce the opportunities for earnings management
b. They increase comparability of accounting information
c. They allow for specific structuring of transactions to work around the rules
d. All of the above are disadvantages.

5. The statement that is describing the concept of reliability is:

a. The measurements are repeatable or reproducible and as a result demonstrate their
b. The agreement of the results among repeated use of the measurement operation as
applied to a given property
c. The proven consistency of an operation to produce satisfactory results
d. All of the above describe the concept of reliability.