financial accounting theory

17- The two primary qualities that make accounting information useful for decision making are

A- Comparability and consistency

B- Materiality and timeliness.

C- Relevance and reliability.

D- Reliability and comparability.

18- Advantages of development of conceptual framework include, except:

A- Enhancing the consistency of accounting standards

B- More compatible accounting standards

C- Alleviating political pressure

D- Reducing the decision usefulness role of financial reports

19- David (1998) implemented a research to investigate the relationship between earnings manipulation and borrowing orientation; such research is:

A- Explanatory theory research

B- True income theory research

C- Positive theory research

D- Decision makers theory research

E- Both A & C are correct answers

20- 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