Theory

1- The theory which is based on the assumption that individuals act to maximize their own expected utilities is called: A- Agency theory B- Positive theory of accounting C- Negative theory of accounting D- Both A and B are correct answers 2- Group of highly interrelated and integrated theories is: A-Science B- Knowledge C- Philosophy D- Thought 3- the most comprehensive concept that encompasses relatively the most of groups interested in the company and its information is A- Stockholders B- Stakeholders C-Board of directors D- Corporate governance 4- 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 5- 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