16. Key problems for owner-manager agency relationships are:

Select one:

A.

dividend retention.

B.

horizon problem.

C.

risk aversion.

D.

all of the above.

17. Contingency theory proposes that:

Select one:

A.

Accounting policies are likely to be consistent within industries.

B.

Shareholder needs drive accounting system choices.

C.

No universally consistent accounting system can apply to all organisations.

D.

Size is not an important factor when considering management accounting systems.

18. Fair value accounting:

Select one:

A.

Appears in many accounting standards.

B.

Is simply a refinement to the definition of historic cost.

C.

Is currently rare in accounting standards.

D.

Is a new concept.

19.Traditionally what measurement technique has been most commonly used:

Select one:

A.

Modified historical cost.

B.

Replacement cost.

C.

Fair value.

D.

Sales value.

20. Which of the following would indicate that market is inactive?

Select one:

A.

Little information is publicly available.

B.

Price quotations don't reflect current information.

C.

Indices are demonstrably uncorrelated with recent indications of fair

D.

All of the above.