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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