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Capital market research in accounting assumes that equity markets are weak form efficient

Accounting Aug 15, 2020

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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