Mattesich Pool Questions
1.According to what you read in the book review by Dennis Patz and Chapter 1 from the Mattesich book, which of the following were not alleged by Demski et al about accounting research (whether or not Mattesich agrees with the allegations)?
a. Accounting research has failed to lead practice.
b. There is a tendency for senior faculty to evaluate performance of their juniors on too narrow a basis, discouraging original and innovative research.
c. Accounting research has had virtually no impact upon the setting accounting standards.
d. All of the above.
2. Mattesich contends that academic researchers led the way in practitioner use of
a. Measuring risks of derivative financial instruments.
b. Measuring liabilities of post-employment benefits.
c. Statistical sampling in auditing.
d. All of the above.
3. Which of the following are consistent with the allegations in Chapter 1 by Mattesich (whether or not you agree with Mattesich)?
a. Accounting standard setters have overlooked or otherwise resisted the lead taken by academic researchers in defining a conceptual framework that should underlie accounting standards.
b. .Accounting standard setters have utilized some academic research such as research in price level adjustments and current cost adjustments. However, the standard setters messed up when setting ill-fated standards such as SFAS 33.
c. Accounting standards cannot be set upon rigorous logic and scientific research.
d. None of the above.
4. According to Mattesich the "legislative and social crisis" in accounting arises from
a. The favoring of management over investors in the auditing processes.
b. The failure of academic research to champion legislative and social elements of accounting.
c. The decline of moral and religious values in society as a whole.
d. The lack of independence of the FASB and other standard setters around the world from the firms that ultimately provide the funding for standard setting.
5. According to Mattesich the "moral or spiritual crisis" in accounting arises from
a. The favoring of management over investors in the auditing processes.
b. The failure of academic research to champion legislative and moral elements of accounting.
c. The decline of moral and religious values in society as a whole.
d. The lack of independence of the FASB and other standard setters around the world from the firms that ultimately provide the funding for standard setting
6. Mattesich argues in favor of Bertrand Russell's concepts of
a. Simple-minded model building that assumes away much of the complexity of reality in order to deal rigorously with elements that can be researched with rigor.
b. Muddle-headed research that sacrifices rigor in order to study the world as it is rather than the world that can be modelled.
c. Both a and b are correct in a two-pronged approach.
d. Nether a nor b lead to much progress in accounting.
True/False
1.Vega measures the sensitivity of the option premium to changes in the anticipated vola¬tility of the underlying asset.
2.Vega is the most linear of the option pricing model derivatives.