MULTIPLE CHOICE
1.Which of the following methods of valuing an asset is based on the amount that a firm could acquire by selling the asset?
a. Replacement cost
b. Entry value
c. Exit value
d. Both a and b
2.Which of the following methods of valuing an asset is based on the amount that would be paid for it in markets where the asset would ordinarily be acquired?
a. Replacement cost
b. Entry value
c. Exit value
d. Both a and b
3.Which of the following would be considered a political factor relative to the financial accounting policy function?
a. Auditors
b. Inflation
c. Taxes
d. Price changes
4.Which of the following groups carry out most accounting research?
a. Public accounting firms
b. Private industry
c. Accounting professors
d. Chartered Financial Analysts
5.If a number assigned to an object is an actual measurement of a property of the object, it is referred to as a(n):
a. Direct measurement
b. Biased measurement
c. Indirect measurement
d. Prediction measurement
6.Which of the following factors is not listed in your text as affecting a direct assessment measure?
a. The measurer
b. The attribute being measured
c. Instruments available for the measuring task
d. The individual that will use the measure
7.The simplest type of measuring system is the:
a. Interval scale
b. Ratio scale
c. Nominal scale
d. Ordinal scale
8.Which measurement scale indicates an order of preference but not the degree of preference among ranks?
a. Interval scale
b. Ratio scale
c. Nominal scale
d. Ordinal scale
9.The use of which of the following types of measurement scales in accounting allows meaningful comparisons among similar accounting measurements for different firms.
a. Interval scale
b. Ratio scale
c. Nominal scale
d. Ordinal scale
10.For which measurement scale must the change in the attribute measured among assigned numbers be equal?
a. Interval scale
b. Ratio scale
c. Ordinal scale
d. Both a and b
11.For which measurement scale must the change in the attribute measured among assigned numbers be equal and the zero point imply the absence of the attribute measured?
a. Interval scale
b. Ratio scale
c. Ordinal scale
d. Both a and b
12.Which of the following is an example of a measurement rather than a calculation?
a. FIFO inventory valuation
b. Replacement cost of ending inventory
c. LIFO cost of goods sold
d. Historical cost depreciation
13.In an accounting context, which of the following represents the degree of consensus among measurers in situations where a given group of measurers having similar instruments and constraints measure the same attribute of a given object?
a. Bias
b. Equality
c. Objectivity
d. Impartiality
14.In attempting to analyze the worth of an accounting measure, which of the following qualities is not mentioned in the text as an important consideration?
a. Objectivity
b. Timeliness
c. Cost
d. Complexity
15.Which of the following is not a major input into the accounting standard-setting process?
a. Accounting theory
b. Political factors
c. Geographical constraints
d. Economic conditions