cion 1 Principles-based standards and rules-based standards can both be exploited by using aggressive accounting methods, but in different ways. Discuss this statement. Is this statement true or false, and why? (Hint: Be careful) "Internally-generated goodwill cannot be reported as an asset although it meets the general definition of an asset, since it cannot be measured correctly". The accounting treatment of consolidated financial statements is an example of the application of the substance over form principle. Discuss how this principle is applied in the accounting for consolidated financial statements Hint: Consider the general application of the substance over form principle in accounting for consolidated financial statements, and also the case of control with less than full ownership by the investor (e.g. 90%) estion 4 Compared to rules-based standards, principles-based standards are: et answered ed out of 1 question 10 Select one: Tin None of these answers O b. Lead to more verifiable information O c. Simpler O d. Lead to more comparable information NEXT PAGE estion 6 If you want to follow a purely deductive approach, you have to: t answered Tout of question Select one a. Use small samples b. Use large samples OC. None of these O d. Not use empirical data NEYT DRC on 7 wered If a researcher is studying whether there exists a relation between a certain type of accounting information and share prices, his/her study is an example of: of 1 tion Select one: a. Explanation Time 03 Ob Description c. Prediction d. Prescription NEXT PAGE Question 6 If you want to follow a purely deductive approach, you have to: Not yet answered Marked out of 1 Flag question Select one: a. Use small samples b. Use large samples c. None of these d. Not use empirical data NEXT PAGE Question 5 Which of the following is an argument that does not support much mandatory regulation of accounting information? ot yet answered aried out of 1 Flag question Select one: O a. The firm is a monopoly supplier of its own information b. Failures of accounting even under regulation O c. Users of accounting information can buy the information if they need it O d. Accounting information is a public good NEXT PAGE Question 12 Not yet answered Marked out of 1 Which of the following statements is true about the conceptual framework for financial reporting? P Flag question 10 Select one: Finish Users of accounting information have limited ability regarding financial reporting Time O b. Accounting reports should become the only relevant source of information about companies c. Accounting information should tell the user whether the financial results are satisfactory. d. Information is not costless to provide, so benefits of usage should exceed costs of production FINISH ATTEMPT... Is this statement true or false, and why? "Principles-based standards are better than rules-based standards in terms of comparability of financial statements". Note: Justify your answer, not just say "yes, principles-based are" or "no," "rules-based are ion 1 Principles-based standards and rules-based standards can both be exploited by using aggressive accounting methods, but in different ways. Discuss this statement. tion Which of the following statements is true about the conceptual framework for financial reporting? of 1 tion Select one: a. Users of accounting information have limited ability regarding financial reporting b. Accounting reports should become the only relevant source of information about companies c. Accounting information should tell the user whether the financial results are satisfactory O d. Information is not costless to provide, so benefits of usage should exceed costs of production FINISH ATTEMPT Signaling theory argues that companies will voluntarily disclose their accounting information even if it is bad. Why