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Accounting Theory Question Paper

Accounting Theory

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2008

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2007/2008
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR
OF COMMERCE
BAC 405: ACCOUNTING THEORY
DATE: Wednesday 11th June, 2008 TIME: 8.00 – 10.00 a.m.
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INSTRUCTIONS:
Answer all questions.
Question 1
(a) A single universally accepted basic accounting theory does not exist at the
moment. Instead, a multiplicity of theories have been proposed. Explain the
statement.

(10 marks)
(b) Explain the meaning of syntactical, semantical and pragmatic theories with
suitable examples.

(10 marks)
Question 2
(a) Comment on the significant developments that occurred between 1930 and 1933
that helped to bring about changes in accounting theory. (10 marks)
(b) “Without accounting concepts and conventions objective, reliable, consistent
and comparable accounts cannot be maintained.” Comment. (10 marks)
Question 3
(a) “An entity’s human components are undoubtedly its most indispensable
resources but they cannot be considered as assets.” Comment on the statement

(10 marks)
(b) How does “accounting” concept of income differ from economic concept?

(5 marks)
Question 4
(a) Explain the criteria for recognition of revenues.

(`10 marks)
(b) Explain how the fundamental accounting equation, which is often referred to as
Assets = Liabilities + Owners’ Equity can be employed in varying degrees of
extension to establish the relevant relationship between transaction, accounts,
debit and credit entries and the product of the accounting process – the basic
financial statements.

(5 marks)
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Accounting Theory Question Paper

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