Midterm Exam (Take-home)
Due on Sat 10/12/19 BY 6:00 pm
Instructions: Answer five (5) questions only. Each is worth 20 points. The maximum length for each question is one and a half pages and the minimum is ½ page typed 12 font double spaced. You must use references to support your points, please.
FAIR VALUE ACCOUNTING AND ACCOUNTING THEORY
- Does accountancy have a natural body of theory just like other disciplines such as physics, economics, biology, etc.? If yes or no, how does accounting operate to come up with accounting principles?
- Discuss three leading challenges to fair value accounting as well as the proposed solutions to them.
- Explain the role (i.e. how, why, where, when, etc.) European governments have played in influencing fair valuing accounting standards.
- Discuss three major limitations of historical cost accounting.
SOCIAL ROLE OF ACCOUNTANCY
- Discuss three major social roles of accountancy.
- Discuss the evolution of controllership from the 1920s to the 2020s.
- As a management accountant, how and when will you use flash reports?
CLOSING THE BOOKS
- What are the major steps involved in the closing process?