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Capital market research in accounting assumes that equity markets are weak form efficient
Capital market research in accounting assumes that equity markets are weak form efficient. Select one: O a. True O b. False
Which of the following research approaches emphasizes going from the specific to the general? Select one: O a. Inductive O b. Deductive O c. General O d. Agency
According to the FASB's conceptual framework, which of the following enhances information that is relevant and faithfully represented? Select one: O a. Confirmatory value O b. Materiality O c. Neutrality O d. Comparability
Based on agency relationship of Jensen and Meckling, the term principal describes the manager. Select one: O a. False O b. True
which of the following is not one of the enhancement qualitative characteristics of financial statements (FASB)? Select one: O a. Verifiability O b. reliability O c. Understandability O d. Timeliness
Because the company's income is low this year, a switch from accelerated depreciation to straight-line depreciation is made this year. This Violated Select one: O a. Violated Economic entity O b. Violated Historical cost O c. Consistency O d. Time period assumption
Expert Solution
| Capital market research in accounting assumes that equity markets are weak form efficient. | FALSE | Capital market research assumes the semi-strong-form efficiency perspective. |
| Which of the following research approaches emphasizes going from the specific to the general? | Inductive | Under inductive approach the researcher first gather data than analyse the data then develop the theory |
| According to the FASB's conceptual framework, which of the following enhances information that is relevant and faithfully represented? Select one: O a. Confirmatory value O b. Materiality O c. Neutrality O d. Comparability | c. Neutrality | Financial statement should me Complete, neutral and free form error. |
| Based on agency relationship of Jensen and Meckling, the term principal describes the manager. | FALSE | It describes the relationship between principals/agents and delegation of control. This relationship include corporate management (agent) and shareholders (principal) |
| which of the following is not one of the enhancement qualitative characteristics of financial statements (FASB)? Select one: | Reliability | Enhancing (Secondary) Qualitative Characteristics are:Verifiability Timeliness Understandability Comparability |
| Because the company's income is low this year, a switch from accelerated depreciation to straight-line depreciation is made this year. This Violated Select one: O a. Violated Economic entity O b. Violated Historical cost O c. Consistency O d. Time period assumption | c. Consistency |
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