Financial Accounting and Reporting PRL Quiz 1.

Read the paper following paper to answer the quiz below.

Abed, I. A., Hussin, N., Haddad, H., Almubaydeen, T. H., & Ali, M. A. (2022). Creative accounting determination and financial reporting quality: the integration of transparency and disclosure. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 38.

https://doi.org/10.3390/joitmc8010038

Question 1: What is the primary objective of creative accounting practices?

A

To violate accounting policies and laws.

B

To influence financial indicators using accounting knowledge.

C

To ensure complete transparency in financial reporting.

D

To eliminate all forms of financial manipulation

Question 2: What role do transparency and disclosure play in financial reporting?

A

They have no significant impact on financial reporting.

B

They are used to hide financial manipulations.

C

They help in directing and regulating business organizations.

D

They are only relevant in non-commercial banking sectors.

Question 3: According to the paper, which of the following is NOT a determinant of creative accounting?

A

Ethical issues.

B

Disclosure quality.

C

Ownership structure.

D

Governmental regulations.

Question 4: What is the consequence of creative accounting on financial reporting quality?

A

Enhances financial reporting quality.

B

Has no impact on financial reporting quality.

C

Reduces financial reporting quality.

D

Only affects external audits.

Question 5: How does ownership structure influence creative accounting practices?

A

It has no influence on creative accounting practices.

B

Increases the extent of creative accounting practices.

C

Decreases the extent of creative accounting practices, depending on the firm size.

D

Ownership structure is only relevant in multinational corporations.

Question 6: Which of the following best describes the relationship between internal control and financial reporting quality?

A

Strong internal control is correlated with lower financial reporting quality.

B

There is no correlation between internal control and financial reporting quality.

C

Weak internal control is correlated with higher financial reporting quality.

D

Strong internal control is correlated with higher financial reporting quality.

Question 7: How does the ownership structure in organizations affect the demand for information and disclosure, according to the agency theory?

A

No impact on the demand for information and disclosure.

B

Ownership structure decreases the demand for information and disclosure.

C

Ownership dispersion increases the demands for information and disclosure.

D

Ownership concentration increases the demands for information and disclosure

Question 8. How does transparency influence an organization's attractiveness to investors?

A

It has no impact on attractiveness to investors.

B

It makes an organization less attractive to investors.

C

It makes an organization more attractive to investors.

D

It only affects new investors.

Question 9. In the study, what was the primary reason for the selection of bank accountants as respondents?

A

They were the most available group.

B

They have expert knowledge relevant to the study.

C

They were the only group willing to participate.

D

They represented the largest employee group in banks.

Question 10. According to the paper, what is a challenge faced by organizations in achieving higher transparency?

A

Transparency leads to a loss of competitive advantage.

B

Transparency has no challenges as it is always beneficial.

C

Higher transparency always leads to higher costs.

D

Transparency results in decreased investor interest.

Question 11. In the context of the study, what is the impact of transparency and disclosure on the relationship between ethical issues and financial reporting quality?

A

They have a negative moderating effect.

B

They have no significant moderating effect.

C

They have a positive moderating effect.

D

They transform the relationship but don’t moderate it.

Question 12. What was the sampling technique used in the study?

A

Random sampling.

B

Stratified sampling.

C

Purposive sampling.

D

Systematic sampling.