6- Stephens (1980) examined the usage of financial statements in bank lending decisions with the intention to increase the scope of decision process research. Such research is primarily classified as

A- Positive accounting theory

B- Decision usefulness theory

C- Negative accounting theory

D- None of the above is correct answer

7- 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

8- 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

9- 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

10- DeFond and Jiambalvo (1994) find that sample firms accelerate earnings prior to lending covenants, DeFond and Jiambalvo (1994) research is classified as

A- Positive accounting theory

B- Normative accounting theory

C- Debt covenant theory

D- Both A and C are correct answers