financial accounting theory

21- 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

22- The underlying assumption that the capital markets react in an efficient and unbiased manner to publicly available information and that stocks prices completely mirrors the accessible information is:

A-Efficient markets hypothesis

B- Positive accounting theory

C-Agency theory

D- Political cost hypothesis

23- 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

24- The accounting alternative that assumes that the purchasing power of the currency unit is fixed, is:

A-Current purchasing power accounting

B- General price level accounting

C- Current cost accounting

D- Historical cost accounting

21- 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

22- The underlying assumption that the capital markets react in an efficient and unbiased manner to publicly available information and that stocks prices completely mirrors the accessible information is:

A-Efficient markets hypothesis

B- Positive accounting theory

C-Agency theory

D- Political cost hypothesis

23- 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

24- The accounting alternative that assumes that the purchasing power of the currency unit is fixed, is:

A-Current purchasing power accounting

B- General price level accounting

C- Current cost accounting

D- Historical cost accounting