Choice question:

Which of the following best describes critical theorists views on disclosure of social responsibility information?

• Corporate social reporting may be beneficial because it gives the impression of concern and change but in fact, will do no more than allow the system to capture the radical elements of, for example, socialism, environmentalism or feminism and thus emasculate them.
• The disclosure of corporate social responsibility information acts to legitimise, and challenge, those providing the information.
• Greater disclosure of social responsibility information efforts is wasted unless they are accompanied by fundamental changes in how society is structured.
• All of the given options are correct.

Which measurement system is most appropriately referred to as an accurate form measurement?

• Net realisable value
• Current cost accounting
• Fair value accounting
• Historical cost accounting

If historical cost profits are all distributed in dividends during times of rising inventory prices, this will lead to (assuming other things being equal):

• A reduction in financial capital
• No effect on capital
• An erosion of operating capacity
• None of the given options is correct.

Which of the following is not an argument for regulating financial accounting information?

• To ensure equal access to information by all interested parties, including those that have limited power to demand it.
• A market for information without regulation is inefficient and may result in the production of a sub-optimal amount of information.
• To assist management with better information, and to provide reports for use by management and parties within the organisation.
• To protect users from fraudulent or misleading information.

Critical researchers believe that regulation of corporations is ultimately pointless because the government:

• Does not believe that more effective social and environmental legislation is required;
• Favours the rich
• Is deceived by corporations
• I weak and powerless

Which of the following is an example of political costs under the PAT perspective?

• Costs associated with increased wage claims
• Contributions to political parties
• The cost of remaining largely unnoticed by government regulatory agencies
• Wage and salary deductions paid to unions