19- David (1998) implemented a research to investigate the relationship between earnings manipulation and borrowing orientation; such research is: A- Explanatory theory research B- True income theory research C- Positive theory research D- Decision makers theory research E- Both A & C are correct answers 20- Flora Guidry, Andrew J. Leone, and Steve Rock (1999) tests the bonus-maximization hypothesis that managers make discretionary accrual decisions to maximize their short-term bonuses, such theorizing should be classified as: A-Bonus plan theory B-Debt theory C-Political cost theory D-True income theory 21- Lan Sun (2012) sheds light in explaining contractual incentives and provides useful information in understanding the executive compensation contract-driven earnings management behavior, such theorizing should be classified as: A-Bonus plan theory B-positive accounting theory C-Political cost theory D- A & B 22- The underlying assumption that the capital markets react in an efficient and unbiased manner to publicly available information and that stocks prices completely mirrors the accessible information is: A-Efficient markets hypothesis B- Positive accounting theory C-Agency theory D- Political cost hypothesis 23- The field of study which deals with the mechanisms of restricting the consequences of the conflict of interest by the executives is referred to as A-Corporate governance B-Corporate management C-Corporate risk management D-None of the above is correct 24- The accounting alternative that assumes that the purchasing power of the currency unit is fixed, is: A-Current purchasing power accounting B- General price level accounting C- Current cost accounting D- Historical cost accounting