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University of Aberdeen Examination for the Degree of MA AC1009: Accounting and Accountability Wednesday 26 January 2011, 15.00 – 17.00, Games Hall, Butchart Centre

Session 2010-2011

Rubric: Answer all questions from SECTION A, and two from the SECTION B.

SECTION A (Answer all questions from this section)

Question 1 (20 sub questions 2 marks each, total 40 marks) Select the correct answer (only one choice is correct) 1.1 The main purpose of a _______________ is to generate surpluses and use the wealth for social and community objectives. a. partnership b. sole proprietorship c. not-for-profit organisation d. private limited liability company 1.2 According to the Companies Act 2006, the _____________ are required to prepare a _____________ report. a. shareholders, business prospect b. auditors, business review c. stakeholders, business prospect d. directors, business review 1.3 In a partnership, the partners make decisions collectively and are accountable to one another. This is a form of ________________ accountability. a. hierarchical b. market c. legal d. participatory 1.4 The directors are responsible for filing the company’s accounts and reports with the International Accounting Standards Board (IASB). a. True b. False

1.5 ___________________ is a network-based organisation which develops the framework for voluntary sustainability reporting. a. Global Reporting Initiative b. Global Sustainability Reporting c. Global Environmental Reporting d. Global Voluntary Reporting
Questions continued over…
Page 1 of 5

1.6 Which of these are the qualitative characteristics of financial information? I. Comparability II. Consistency III. Accountability IV. Understandability a. b. c. d. I and II I and III I, II and IV all of the above

1.7 Functionalists believe that the accounting profession is here to make money. a. True b. False 1.8 The financial

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