selcet the correct answer

11- 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

12- 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

13- 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

14- 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

15- The underlying assumption that the capital markets react in an efficient and unbiased manner to publicly available information and that 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-Corporate risk 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- Earnings management

D- None of the provided answers is correct one

20- DeFond and Jiambalvo (1994) find that sample firms accelerate earnings prior to lending covenants, DeFond and Jiambalvo (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

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