1 accounting theory helps us understand accounting

1. Accounting theory helps us understand accounting better as:
a. A random process.
b. A fundamental part of the natural universe.
c. A human endeavour.
d. A representation of truth.
2. A normative theory: 3. A positive theory:

ACC235 Contemporary Issues in Financial Accounting
4. Theories in accounting can help us to understand the decisions of:
5. Key problems for owner-manager agency relationships are:
a. dividend retention.
b. horizon problem.
c. risk aversion.
d. all of the above.
6. According to institutional theory which of the following statements is NOT true about
corporate social and environmental disclosure:
7. Which of the following is NOT one of the four ways an organisation can obtain or
maintain organisational legitimacy according to Lindblom?
8. Legitimacy theory argues that. 9. Which of the following is NOT considered a stakeholder according to the managerial
branch of stakeholder theory?
a. Customers.
b. Communities.

ACC235 Contemporary Issues in Financial Accounting
c. Competitors.
d. None of the above, i.e. they are all considered stakeholders
10. A key underlying assumption of Institutional Theory is that people are: