41)

The audit team is preparing to conduct its 2020 audit for Shreyas Company. However, the audit team has not received its audit fees from Shreyas Company for its 2019 audit. This is an example for:

a.

Self-Interest Threat

b.

Self-Review Threat

c.

Advocacy Threat

d.

Familiarity Threat

42)

Which one of the following is not a criticism of positive accounting theory?

a.

PAT has enhanced the understanding of various accounting phenomena and issues.

b.

All of these.

c.

Earnings numbers are useless because they were not prepared according to a single basis.

d.

There is possibility to mislead the stock market by manipulating the earnings number through accounting choices.

43)

Identify which among the following statements is WRONG with respect to rule based vs principle based accounting standards.

a.

The IASs are considered as principle-based.

b.

Rule-based accounting standards are general and more contradictive.

c.

It is like cookbooks, they provide extremely detailed rules that attempt to contemplate virtually every application of the standard.

d.

They are considered as huge guidance and are overly complex.

44)

Which one of the following is an ethical concern of accountants?

a.

Industry practices.

b.

Earnings manipulation.

c.

None of these.

d.

Conservative accounting.

45)

The Higher College of technology made a research on students who are under probation. They checked and defined all types of students from probation 1 to probation 4. The students who are in their last stage of probation in case, if they do not meet the conditions of getting CGPA 2.0 they will be dismissed from college. Hence, to find the more relevant information to solve the problem of such students the college made a critical study of the facts and figures of each and every student in detail through the probation committee. This research refers to:

a.

Analytical research

b.

Diagnostic research

c.

Archival research

d.

Experimental research