5. One of the primary objectives of the conceptual framework project isa. Guide the society in understanding the role of accounting in societyb. Provide standards for classifying major elements of the financial statementsc. Provide a framework for establishing accounting standards and resolving accounting issuesd. Provide a framework for conducting and disseminating accounting research6. A major drawback of the deductive approach to accounting theory construction is that it is falsifiableAnswer False7. In contrast to the inductive approach, the deductive approach of accounting theory construction relieson large observations and empirical regularity to deduce and test theoriesAnswer False8. The inductive approach is more objective and independent of value judgment than the deductiveapproacha. Trueb. FalseAnswer True
9. One of the major differences in their approaches to establishing theories is that the deductive approachattempts to construct reality, whereas the inductive approach attempts to explain realityAnswer True10. Adverse selection is mainly an insurance problemAnswer b11. Which of the following is not a benefit of accounting theory Answer b
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- Balance Sheet, Generally Accepted Accounting Principles, c. Inductive