Question 1

Which of the following is an issue that has to be considered at the output or decision level of the Lens Model?

Accepted Answer

The qualities of the judgment are considered at the output or decision level of the Lens Model, as they pertain to the accuracy and effectiveness of the decision made.

Question 2

According to Wood and Ross (2006),which of the following environmental and social controls is the most influential factor in affecting managers' capital investment decisions with respect to investing in less polluting plant and equipment?

Accepted Answer

Wood and Ross (2006) suggest that the most influential factor in affecting managers' capital investment decisions regarding less polluting plant and equipment is stakeholder opinion. This implies that managers consider the opinions of various stakeholder groups, such as customers, employees, and investors, when making investment decisions. While mandatory disclosure and regulatory costs may also play a role in influencing investment decisions, they are not identified as the most influential factor in Wood and Ross' study.

Question 3

Which of the following is not an example of secondary data?

Accepted Answer

Secondary data refers to data that has already been collected and published by someone else. Choices B, C, and D are examples of secondary data, as they involve using data that has already been gathered. Choice A, data collected through a survey, is an example of primary data because it involves the direct collection of data from the source for the first time for a specific research purpose.

Question 4

Which of the following statements is true when comparing behavioural research with capital markets research?

Accepted Answer

Behavioural research focuses on the analysis of individual decision-making and behaviour regarding financial reporting, while capital markets research evaluates the aggregate impact of financial reporting on market prices and returns. Therefore, C is the most accurate statement. A is incorrect because capital markets research may examine individual responses, but it is not the primary focus. B is incorrect because while some behavioural research may consider individual responses, it is not the main focus. D is incorrect since C is a valid statement.

Question 5

Can behavioural research complement research undertaken using other paradigms?

Accepted Answer

Behavioural research can enhance or complement other research paradigms by addressing issues that might be unresolved or overlooked by other research paradigms, such as those used in capital markets research. Thus, option B is the best choice. Option A is incorrect because it focuses only on one type of behavioural research (behavioural archival research) and does not address the potential complementarity of other behavioural research approaches with different research paradigms. Option C is incorrect because it assumes that behavioural research cannot provide any additional insights, which is not true. Option D is incorrect because there is a correct answer.

Question 6

Which of the following statements is not true about behavioural research?

Accepted Answer

Behavioural research is not solely based on economics-based theories, and it does not assume that all individuals are motivated by the same factors. Rather, it seeks to understand the diverse range of factors that may influence behaviour in different contexts.

Question 7

How is behavioural research relevant to accounting?

Accepted Answer

All of the given options are correct. Behavioral research can provide valuable insights for standard-setters, help test new possibilities, and assist in understanding how financial statement users will react to certain accounting disclosures.

Question 8

Which of the environmental social controls that influence a manager's capital investment in less-polluting plant and machinery is least significant?

Accepted Answer

The answer of Which of the environmental social controls that...

Question 9

Which of the following is an issue that has to be considered at the input level of the Lens Model?

Accepted Answer

The input level of the Lens Model consists of the individual cues that are used by the judge to make a decision. The scaling characteristics of these cues, such as their clarity and distinctiveness, are an important issue to consider at this level. Characteristics of the judge (A), qualities of the judgment (C), and characteristics of the decision rule (D) are all considered at later stages of the model.

Quiz 11: Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research in Accounting