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

Answer rating: 100% (QA)

1 D 2 B 3 B 4 C 5 E EXPLANATIONS 1 Agency theory explains the relationship between the management wh... View the full answer