ACCOUNTING THEORY
List of questions for mid-term exam
The questions in the mid-term exam will be taken from the list of questions below,
and the number of questions for mid exam will be 5 to 10 questions only
Ch. 6 A Conceptual Framework for Financial Accounting and Reporting
1. State the general objectives of financial statements. (p.166)
2. State the qualitative objectives of financial accounting. (p.166)
3. State the four questions that need to be resolve by the “Trueblood Committee”
for the development of the objectives of financial statements. (p.167)
4. State the hierarchical structure of the six objectives of accounting according to
the “Trueblood Report”. You may use the narrative form instead of chart form
to elaborate the structure. (p.167/168)
5. State the definition of “the conceptual framework of financial accounting”
according to FASB. (p.173)
6. State the function or the benefit of a conceptual framework of financial
accounting according to FASB. (p.173/174)
7. Contrast the distinction in measuring earning based on the asset/liability view,
the revenue/expense view, and the nonarticulated view. (p.174)
Ch. 2 The Nature and Uses of Accounting
1. State the virtues of accounting practice as well as the obstacle to maintain the
virtues. (p.41)
2. Elaborate the following possible accounting measurements: (p.43)
a. Direct and indirect measures
b. Past measure, present measure, and future measure
c. Retrospective measure, contemporary measure, and prospective
measure.
3. What is accounting policies according to APB Opinion 22 (p.53)
4. Explain the meaning of designed accounting (p. 54)
5. What is the problem of accounting information based on “the selective
financial misrepresentation hypothesis” ? (p. 54)
6. State the three out of six-part action plan to improve the “reliability and
transparency” of financial statements as proposed by SEC Chaiman Levitt. (p.
55)
7. State the common type of fraudulent financial reporting (p.61)
Ch. 3 The Elements and Structure of an Accounting Theory
1. Describe shortly the three functions of theory according to John Haervard and
Sheth Jagdish. (p.81)
2. What the midle-range theories of accounting mean? (p.84)
3. What are the conclusions of the AAA’s research regarding the midle-range of
accounting theories? (p.84)
4. What is the deductive approach in formulating accounting theory mean? (p.92)
5. What are the steps used to derive the deductive approach in accounting
theory? (p.92)
Ch. 7 The Structure of Accounting Theory
1. State the elements of the structure of an accounting theory. (p.210/211)
2. State the definition of: the accounting postulates, the theoretical concepts, the
accounting principles, and the accounting techniques.
3. State and describe shortly the four types of the accounting postulates. (p.212)
Ch. 4 The Traditional Approaches to the Formulation of an Accounting Theory
1. What are the pragmatic approach and the authoritarian approach in
formulating the accounting theory mean? (p.110)
2. Contrast the different between the deductive approach and the inductive
approach in formulating an accounting theory, including the stages of each of
the approach. (p.111/112)
3. Describe shortly the meaning of the ethical approach, the sociological
approach, and the economic approach in the formulation of an accounting
theory.
Ch. 5 The Regulatory Approach to the Formulation of an Accounting Theory
1. Contrast the public-interest theories and the interest-group or capture theories
in the theories of regulation. (p.135)
2. Contrast the political ruling-elite theory of regulation and the economic theory
of regulation, as the main versions of the interest-group theories. (p.135).
3. Should accounting be regulated? Give concise argument to this issue. (p.136)
4. What is accounting standards oveload mean? Give a concise explanation.
(p.146)
5. What is accounting choice mean? Elaborate concisely (p.149)
Ch. 8 Fairness, Disclosure and Future Trend in Accounting
1. What is fairness in accounting mean? Elaborate concisely (p.250)
2. State the areas in financial statements that should be enhanced to meet users’
need for imformation, according to the Jenkins Committee. (p264)
3. State the purposes of disclosure according to FASB Concepts Statement No.
5. (p.266)
4. The requirement of expanded disclosures beyond the conventional
accounting information are motivated by the principle of fairness in disclosure.
State the example of new requirement of accounting disclosures under the
principle of fairness in disclosure. (p.268)