inal-Fall-20-21-fat.docx Microsoft Word ew View Developer Paragraph AaBbCcl AaBbCc AaBbC AaBbCc AaB Normal No Spaci... Heading 11 Heading 2 Styles Title 15-The underlying assumption that the capital markets react in an efficient and unbias manner to publicly available information andthat stocks prices completely mirrors the accessible information' is: A Efficient markets hypothesis B-Positive accounting theory C-Agency theory D-Political cost hypothesis 16 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-Corporaterisk management D-None of the above is correct 17-The matching principle in accounting is sometimes called: A- Expense recognition principle B-Revenue recognition principle C-Current value measures principle D-Fair value measures principle 18-The accounting principle that identifies which expenses to be allocated to a particular accounting period is: A-Revenue recognition principle B-Expense recognition principle C-Matching principle D-Both B & C are correct answers 19. The attempt to influence short term reported income is A-Earnings quality B-Physical capital maintenance C-Eamings management D-None of the provided answers is correct one 20. DeFond and liamhaho (1994) find that samale firms accelerate asrninos nrior to