1. Financial statements are regulated by?

a. Accounting standards and audit

b. The accounting profession

c. Legislation and accounting standards

d. Legislation, accounting standards and audit

2.Accounting standards reflect?

a. The basic principles generally accepted by the accounting profession

b. How a particular company standardises its financial statements from year to year

c. A consensus between international and USA standard-setting agencies

d. Laws that govern how financial statements are presented

3. Compared with the production of financial statements for shareholders, management accounting information is most commonly?

a. Supplemented by non-financial information

b. More frequent

c. Disaggregated to business unit level

d. All of the above

4. Agency theory is predominantly concerned with?

a. Shareholders appointing agents to manage the business

b. Contractual relationships between shareholders and directors and managers

c. Directors preparing contracts for various business functions

d. Managers appointing agents to carry out various business functions

5. Shareholders and directors and managers have access to different kinds of information. In agency theory, this is termed?

a. Information asymmetry

b. Sharing rule

c. Moral hazard

d. Adverse selection