Theory

6- Stephens (1980) examined the usage of financial statements in bank lending decisions with the intention to increase the scope of decision process research. Such research is primarily classified as A- Positive accounting theory B- Decision usefulness theory C- Negative accounting theory D- None of the above is correct answer 7- 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 8- 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 9-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 govemance B-Corporate management C-Corporate risk management D-None of the above is correct 10- DeFond and Jiambalvo (1994) find that sample firms accelerate earnings prior to lending covenants, DeFond and Jiambalve (1994) research is classified as A- Positive accounting theory B- Normative accounting theory C-Debt covenant theory D- Both A and C are correct answers 11- The existence of many competing accounting theories is due to: a- The existence of different groups of information users 6- The existence of different sets of accounting rules C- Accounting theory is still in its development stage d- The need for different theories