Critical researchers suggest that existing forms of external financial reporting legitimise the capitalist system by :

• Providing a legitimate account of the activities of a corporation.
• Helping to resolve problems caused by the inherent instability of capitalism.
• Assisting investors to allocate capital.
• Highlighting the role of the State in requiring accounting disclosures.

Critical researchers believe that most other forms of accounting research:

• Supports the prevailing political ideology.
• Examines the prevailing political ideology.
• Brackets the prevailing political ideology.
• Challenges the prevailing political ideology.

A theory is most appropriately defined as:

• A proposed explanation of a phenomenon which still has to be rigorously tested.
• A provisionally accepted hypothesis proposed for further research.
• A scheme or system of ideas or statements or propositions which has undergone extensive testing and is generally accepted to behind an observation.
• None of the given options is correct.

According to which moral theory does the moral worth of an individuals action depend exclusively on the moral acceptability of the universal rule of conduct on which the person is acting?

• Utilitarianism
• Deontology
• Virtue theory
• Ethical egoism

Which of the following is not typically considered a reason for the existence of codes of professional ethics?

• Codes work in favour of the accounting profession by reducing the likelihood of further government regulation.
• Codes indicate how members should react to on another.
• Code make explicit those values which may be implicitly required.
• Codes provide an objective base for sanctions against people who violate the rules.