10 accounting theory questions.

1. What is the role of experiments in informing policy-setting / standards?

2. What can experiments do that archival research cannot do?

3. One of our readings claims that lab experiments are a “major” source of knowledge in the social sciences? Do you agree? Why or why not?

4. Fundamental ideas behind principles- and rules-based standards. Would you view US GAAP as principles- or rules-based? Why or why not?

5. Do we need non-GAAP reporting? Some of the papers read we provide several reasons why we should discourage non-GAAP reporting. Do you agree? Why or why not?

6. What is Earnings Management? What are some of the key differences between “real” and “accruals” based earnings management?

7. How has regulation (SOX) affected earnings management by U.S firms? What is the main takeaway for regulators?

8. Can auditors ever be independent? Should they be?

9. Regulators often fail to see “unintended” consequences of their regulations. Provide an example and outline the “intended” and the “unintended” consequence.

10. The only responsibility of a firm is to make profits. Businesses do not have any particular expertise in CSR and should not be trusted to do so on behalf of shareholders. Do you agree? Why or why not? How can accountants help answer this question?