TRUE/FALSE
1.Financial accounting refers to accounting information that is used by management for decision-making purposes.
2.Accounting theory includes the basic rules, definitions, and principles that underlie the drafting of accounting standards and how they are derived.
3.Accounting theory includes conceptual frameworks, accounting legislation, valuation models, and hypotheses and theories.
4.Hypotheses and theories are based on an informal method of investigation.
5.Replacement cost as a measure of asset value is generally more reliable than historical cost.
6.Accounting theory is developed and refined by the process of accounting research.
7.Indirect measures are usually preferable to direct measures because they are less costly to obtain.
8.Assessment measures are concerned with particular attributes of objects and are always direct measurements.
9.When a direct assessment measure is used, there is always only one correct measure.
10.The simplest type of measuring system is the nominal scale.
11.A chart of accounts is an example of an ordinal classification.
12.Numerals assigned in ordinal rankings indicate an order of preference where the degree of preference among ranks is the same.
13.In a ratio scale the zero point implies “nothingness,” or the absence of the quality being measured.
14.Using ratio scale measurement is possible in accounting.
15. Objectivity may be defined as the degree of consensus among measurers.