of financial reports11-David (1998) implemented a research to investigate the relationship between earningsmanipulation and borrowing orientation; such research is:A-Explanatory theory researchB-True income theory researchC-Positive theory researchD-Decision makers theory researchE-Both A & Care correct answers12-Stephens (1980) examined the usage of financial statements in bank lending decisionswith the intention to increase the scope of decision process research.Such research isprimarily classified asA-Positive accounting theoryB-Decision usefulness theoryC-Negative accounting theoryD-None of the above is conrect answer13-Flora Guidry, Andrew J. Leone, andSteve Rock (1999) tests the bonus-maximizationhypothesis that managers make discretionaryaccrual decisions to maximize their short-term bonuses, such theorizing should be classified as:A-Bonus plan theoryB-Debt theoryC-Political cost theoryD-True income theory14-Lan Sun (2012)sheds lightin explaining contractual incentives and provides usefulinformation in understanding theexecutive compensation contract-driven earningsmanagement behavior, such theorizing should be classified as:A-Bonus plan theoryB-positive accounting theoryC-Political cost theoryD-A & B

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reports 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 & Care 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, andSteve Rock (1999) tests the bonus-maximization hypothesis that managers make discretionaryaccrual 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 lightin explaining contractual incentives and provides useful information in understanding theexecutive compensation contract-driven earnings management behavior, such theorizing should be classified as: A-Bonus plan theory B-positive accounting theory C-Political cost theory

reports 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 & Care 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, andSteve Rock (1999) tests the bonus-maximization hypothesis that managers make discretionaryaccrual 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 lightin explaining contractual incentives and provides useful information in understanding theexecutive compensation contract-driven earnings management behavior, such theorizing should be classified as: A-Bonus plan theory B-positive accounting theory C-Political cost theory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Swaps

A swap is a derivative contract in which two parties are agreed to exchange their cash flows from two different financial instruments for a defined period. In swap contracts, cash flows from one financial instrument are fixed and cash flow from other financial instruments is variable based on the interest rate, exchange rate, and commodity price. Swap contracts are transacted in an over-the-counter system. Swap contracts are utilized to hedge risk and mitigate loss.

Question

of financial reports
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 & Care 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 conrect answer
13-Flora Guidry, Andrew J. Leone, andSteve Rock (1999) tests the bonus-maximization
hypothesis that managers make discretionaryaccrual 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 lightin explaining contractual incentives and provides useful
information in understanding theexecutive 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

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