Question 1

Who are residual equity holders?

Accepted Answer

A)  Preferred stockholders
B)  Managers
C)  Bondholders
D)  Common stockholdersE) All of the above
F) B) and C)

Question 2

The APB was the first to successfully derive an underlying framework of postulates and principles.

Accepted Answer

A) True 
 B)False

Question 3

The proprietary theory approach largely coincides with the components of income measurement as it is presently construed in historical cost-based systems.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following postulates states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely?

Accepted Answer

A)  Entities
B)  Time period
C)  Consistency
D)  Going concernE) C) and D)
F) B) and D)

Question 5

Which of the following is a true statement?

Accepted Answer

A)  A principle contains elements observable by empirical techniques.
B)  The APB's Special Committee on Research Program defined both postulates and broad principles.
C)  A principle is an analytical statement whose truth or falsity is self-contained by its internal logic.
D)  Postulates are generally defined as basic assumptions that cannot be verified.E) A) and B)
F) A) and C)

Question 6

Which of the following is not a reason why ARS 1 and ARS 3 fell short of the goal of obtaining a framework for APB accounting opinions?

Accepted Answer

A)  The authors refused to abandon historical cost.
B)  The postulates were not complete and therefore could not exclude all value systems other than the one prescribed in the principles.
C)  At least one of the principles was not derived from any of the postulates.
D)  The question of whether valuations of various assets were additive became an issue.E) B) and C)
F) All of the above

Question 7

The going-concern postulate states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely.

Accepted Answer

A) True 
 B)False

Exam 5: Postulates, Principles, and Concepts

The going-concern postulate states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely.

Correct Answer
verified

Which of the following is not a reason why ARS 1 and ARS 3 fell short of the goal of obtaining a framework for APB accounting opinions?

Correct Answer
verified

Who are residual equity holders?

Correct Answer
verified

The proprietary theory approach largely coincides with the components of income measurement as it is presently construed in historical cost-based systems.

Correct Answer
verified

The APB was the first to successfully derive an underlying framework of postulates and principles.

Correct Answer
verified

Which of the following postulates states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely?

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
verified

Exam 5: Postulates, Principles, and Concepts

The going-concern postulate states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely.

Correct AnswerverifiedShow Answer

Which of the following is not a reason why ARS 1 and ARS 3 fell short of the goal of obtaining a framework for APB accounting opinions?

Correct AnswerverifiedShow Answer

Who are residual equity holders?

Correct AnswerverifiedShow Answer

The proprietary theory approach largely coincides with the components of income measurement as it is presently construed in historical cost-based systems.

Correct AnswerverifiedShow Answer

The APB was the first to successfully derive an underlying framework of postulates and principles.

Correct AnswerverifiedShow Answer

Which of the following postulates states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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