Quiz 1-6 Accounting Theory
1. What factors have the most significant influence on the development of accounting in the
19th century?
a. Book published by Lucca Pacioli
b. Industrial Revolution
c. Great depression
d. All answer are correct
2. The first national professional accounting organization is…. Established on…
a. The Institute of Accountant of New York / 1882
b. The American Institute of Accountant / 1916
c. The American Association of Public Accountant/ 1887
d. The American Association of the University Instructor in Accounting
3. The normative theory is a theory that explains
a. What should happen
b. What have happened
c. What will happen
d. All answer are correct
4. FASB is:
a. US GAAP
b. Accounting Standard Setter in US
c. Accountant organization in US
d. International standard
5. The concept of Capital maintenance is:
a. the concept of earnings recognition
b. The concept of revenue recognition
c. The concept of asset recognition
d. All answer are correct
6. High quality financial statement is:
a. Financial statement that can meet all the needs of all users of financial statement
b. Financial statement prepared in accordance with accounting standard
c. Financial statement that reveals the economic reality of a company
d. All answers are correct
7. If in a very extreme condition the conceptual framework prepared by Indonesian DSAK
contradicts the accounting standard statement, then:
a. The ultimate reference is statements in accounting standard
b. The ultimate reference is conceptual framework
c. Conceptual framework must be modified
d. The conceptual framework and the statements in accounting standard are unlikely to
conflict each other
8. Conceptual framework is one of the output of:
a. Positive theory
b. Normative theory
c. Authoritative theory
d. All answers are correct
9. Which of the following statements is correct:
a. Indonesian accounting standard adopts rule based standard
b. In the principle based standard, the highest reference is statements in accounting
standard
c. In rule-based standards, if there is a conflict between the statements in the
accounting standards and the basic principles for presenting financial statements,
the ultimate reference is compliance with the basic principles of financial
statements.
d. In principle-based accounting standards, there is room for not presenting financial
statements in accordance with accounting standard statements in extreme
conditions
10. Which of the following is not the purpose of the conceptual framework for financial
statement
a. Provide detailed instructions regarding accounting treatment
b. Maintain the quality of financial report in accordance with financial reporting
objective
c. Provide guidance when there is confusion and deadlock in the implementation of
statement in accounting standard
d. Complete the statement of accounting standard
11. Which of the following statements is not the purpose of the conceptual framework
a. Provide the concept that underlies the harmonization of accounting standards
b. Provides the concept that underlies the uniformity of accounting standards
according to the convergence of accounting standards
c. Provide guidelines for financial report presenters in setting standards
d. Provide guidelines for standard setters in issuing accounting standards
12. Which of the following statements is correct?
a. The convergence of Indonesian accounting standards with IFRS causes no
differences in accounting standards
b. Uniform accounting standards of different countries are very possible and can be
obtained
c. What is meant by convergence of accounting standards is uniformization
d. All answers are not correct
13. Which of the following are factors that do not affect the accounting characteristics of
a country
a. Education
b. Legal system
c. Country’ source of funding
d. All answers are not correct
14. The principle of convergence of accounting standards is
a. harmonization of accounting standards
b. uniform accounting practices
c. Use of two accounting standards
d. One accounting standard for the whole world
15. Which of the following statements is true regarding the deductive approach
a. This is called the method of observation
b. A deductive approach is used when building hypotheses
c. Used in drawing conclusions on the evidence collected
d. All answers are not correct
16. Fundamental analysis includes analysis of:
a. Statement of Profit and Loss
b. Notes to financial statement
c. Information regarding founder of company
d. All answers are correct
17. Positive accounting theory
a. Analyze and draw conclusions based on evidence
b. Analyze and draw conclusions based on logical reasoning
c. Analyze and draw conclusions based on judgment
d. All answers are not correct
18. Agency theory is:
a. The theory of the conflict of interest of two parties who have an accountability
relationship
b. Theory about managing the company to achieve its goals
c. Theory explaining financial behavioral
d. All answers are not correct
19. The efficient market hypothesis is better used to explain
a. Market response to dividend announcements
b. The importance of accounting information
c. Financial behavioral
d. All answers are correct
20. A company announced net income Rp 3 B. The income is called:
a. Economic income
b. Physic income
c. Real income
d. Accrual income
21. Economic income
a. Is impossible to calculate exactly
b. Income gained from accounting standard application
c. Income which announced periodically
d. All answers are correct
22. Accounting income is considered as high quality income if:
a. It approximate economic income
b. Reflect company’s real condition
c. Do not contain income smoothing
d. All answers are correct
23. Which one of the statements below is not correct?
a. Revenue can only be recognized if meet the requirement of “ earn” and “ realized”
b. Revenue can only be recognized if service or good have been delivered according
to the sales term of FOB shipping point or FOB destination
c. Revenue of gold mining can be recognized after production have been completed
d. All answers are correct
24. Which one of the statements below is correct
a. Expenditure which is not meet the matching criteria with revenue can not be
recognized as expense
b. A portion of expired asset is called expense
c. A portion of expired asset is called loss
d. All answers are correct
25. In the current year PT A is required to prepare a consolidated report on PT B because
on January 1 of the current year PT A increased its ownership from 10% to 90% of
the share of PT B that change the title of PT A as parent company. Changes to the
reporting of PT A were carried out by:
a. Prospective adjustment
b. Retrospective adjustment
c. Current year adjustment
d. No need for adjustment
26. Under certain condition, a company must change the estimated economic life of an
asset. Change to this estimate are carried out by:
a. Prospective adjustment
b. Retrospective adjustment
c. Current year adjustment
d. No need for adjustment
27. Which of the following statements is true regarding dilutive earning per share?
a. Dilutive earnings per share must be disclosed if the company is profitable
b. Dilutive earning per share describes the real condition of the company's earning
per share
c. Uncovering the company's future prospects for investors to anticipate
d. All answers are correct
28. Gold is an asset which according to the fair value hierarchy is:
a. Quoted prices in active markets for identical assets or liabilities
b. Inputs other than quoted market prices that are observable for the assets or
liability
c. Unobservable inputs for the asset or liability
d. All answers are correct
29. Measurement of common stock refers to:
a. Fair value
b. Market value
c. Historical value
d. Adjusted value
