Question: While ERISA has been helpful, how well

> At the beginning of this chapter, we described a study in which participants shouted either a swear word or a neutral word over and over while holding one hand in a bowl of ice water. The study obtained two scores for each participant: how long the pain

> To evaluate the effectiveness of a new television commercial, a researcher measures attitudes toward the advertised product for a group of consumers before and after they view the commercial. Identify one factor that threatens the internal validity of th

> A hypothesis test attempts to rule out chance, or sampling error, as a plausible explanation for the results from a research study. Explain how a hypothesis test accomplishes this goal.

> Briefly explain what is meant when a researcher reports “a significant mean difference between two treatment conditions.”

> Describe the general concept of sampling error and explain why this concept creates a problem to be addressed by inferential statistics.

> Explain the difference between a linear relationship and a monotonic relationship and identify which correlation is used to measure each.

> Describe a distribution of scores that has a mean of M = 30 and a standard deviation of SD = 6 (Where are the scores centered? What range of values contains most of the scores?)

> Under what circumstances are the median and the mode considered to be better than the mean for describing central tendency?

> List the major sections of an APA-style report in order of appearance:

> The purpose of an independent measures t-test is to determine whether the mean difference obtained between two groups in a between-subjects study is greater than could reasonably be expected by chance. In other words, the test determines whether the data

> A researcher who is interested in examining the eating behavior of adolescents records the number of calories consumed each day by each individual in a sample of 25 adolescents and computes the average for the sample. For this study, what is the statisti

> What is the goal of a single-case experimental research design?

> In addition to the key words that were defined in the text, you should be able to define the following terms, which also appear in the glossary:

> In general, how does a phase-change design like the ABAB reversal design demonstrate that the treatment (rather than chance or coincidence) is responsible for causing changes in behavior?

> Identify the four phases that make up an ABAB (reversal) design, and describe how the participant’s behavior is expected to change each time the phase is changed if the study is successful.

> Describe the appearance of a scatter plot showing the data from a set of scores that produces a Pearson correlation of r = −0.76.

> Define content analysis, and explain how it is different from regular behavioral observation.

> Traditional statistics (means, variances, and hypothesis tests) are not used to evaluate the results from a single-case study. Explain how the results are evaluated.

> Identify the basic goals for descriptive statistics and for inferential statistics.

> In addition to the key words, you should also be able to define each of the following terms: Frequency distribution Histogram Polygon Bar graph Degrees of freedom, df Line graph Scatter plot Pearson correlation Spearman correlation Regression equation Sl

> Explain how increasing the size of the sample size can influence the outcome of a hypothesis test.

> What pattern of results is needed to provide convincing evidence that behavior changed when the phase was changed?

> In this chapter, we introduced the observational research design, the survey research design, and the case study research design as examples of descriptive research strategies. What differentiates these three designs from other types of research that use

> What are demand characteristics, and how do they limit the validity of the measurements obtained in a research study?

> How does a multiple-baseline design rule out chance or coincidence as the explanation for changes in behavior that occur when the treatment is started?

> Explain how a time-series design minimizes most threats to internal validity from time-related variables.

> Most research in the behavioral sciences involves gathering information from a group of participants. However, the case study design focuses on a single individual. Under what circumstances is the case study approach preferred to a group design?

> Under what circumstances would you use a multiple-baseline design instead of an ABAB (reversal) design?

> In addition to the key words, you should also be able to define the following terms: statistical significance/statistically significant result practical significance or clinical significance

> Each of the following research studies uses a survey as a method for collecting data. However, not all of the studies are examples of the survey research design. Based on the information provided for each study, (a) indicate whether it is or is not an e

> What is the general advantage of using the survey research design instead of the observational design? In the same context, what is the disadvantage of survey research?

> Describe the relationship between the alpha level and the likelihood of making a Type I error.

> Explain the distinction between naturalistic and contrived observation, and describe the situations in which contrived observation may be particularly useful.

> Each of the following studies examines the relationship between sugar consumption and activity level for preschool children. Identify which is correlational, which is experimental, and which is nonexperimental. Study 1: A researcher obtains a sample of 1

> Describe the difference between inductive and deductive reasoning and give an example of each.

> Describe how the concept of participant reactivity might explain why a person’s behavior during a job interview is very different from a person's behavior with friends.

> A researcher wants to describe how fine motor skills change as a group of infants age from 18 to 24 months. Describe how this study could be done as a cross-sectional design. Next, describe how this study could be done as a longitudinal study.

> Outline the major advantages and disadvantages of administering a survey by mail.

> In addition to the key words, you should also be able to define each of the following terms: Descriptive research strategy Behavioral observation Habituation Behavior categories Inter-rater reliability Frequency method Duration method Interval method Ti

> Describe how the third-variable problem and the directionality problem limit the interpretation of results from correlational research designs.

> For a two-factor research study with two levels for factor A and four levels for factor B, how many participants are needed to obtain five scores in each treatment condition for each of the following situations? a. Both factors are between-subjects. b. B

> In Figure 11.5, we show three combinations of main effects and interactions for a 2 × 2 factorial design. Using the same 2 × 2 structure, with factor A defining the rows and factor B defining the columns, create a set of means that produce each of the fo

> Define the three types of survey questions (open-ended, restricted, and rating-scale) and identify the relative strengths and weaknesses of each.

> In addition to the key words, you should also be able to define each of the following terms: Publication Manual of the American Psychological Association Plagiarism Author note Subjects subsection Participants subsection Procedure subsection Apparatus su

> What are some reasons why consolidated reports are thought to be relevant?

> What is meant by the term one-line consolidation? What differences occur in financial statements when a one-line consolidation rather than full consolidation is used?

> Is the treatment of unrecognized prior service cost and actuarial gains/ losses in SFAS No. 87 an example of the asset-liability or revenue-expense orientation?

> What prompted FASB Accounting Standards Update 2009-09?

> What does the term functional currency mean?

> Current discussions by the Boards leave room open for two Accounting for Leases Standards; one for lessee and another one for lessor. Should two Accounting for Leases Standards be issued? Support your response?

> Why is the G4+1 like the Big Ten (a.k.a. Western Athletic Conference)?

> Compare the present system involving consolidation, equity method, and fair value accounting for intercorporate equity investments with finite uniformity as it exists in lease accounting.

> Should valuable lease options of lessees be capitalized?

> What issues of qualitative characteristics of accounting information (SFAC No. 2) are important relative to accrual accounting for OPEBs?

> What is the danger, particularly to older employees of restructuring pension plans into “cash benefit plans?”

> Why does the elimination of poolings improve representational faithfulness and comparability.

> Why does the elimination of poolings (SFAS No. 141) and the indefinite life of goodwill subject to impairment (SFAS No. 142) represent a possible “quid pro quo?”

> Why is the IASB standard (IAS 7) substantially shorter than the FASB’s standard (SFAS No. 13)?

> What is an equity carve-out?

> How are minority interests handled in consolidations?

> Is SFAS No. 87’s argument favoring recognition of a pension liability for accumulated benefits consistent with the conceptual framework project?

> Describe the implicit assumption made in SFAS No. 94 about the reporting entity.

> Does it matter if capital leases are reported in a footnote or in the body of the balance sheet? What research evidence exists to help evaluate this question?

> Why was there reason to expect some negative economic consequences arising from lease capitalization? What is the role of neutrality in such a situation? What is the response based on research findings to date?

> Why did APB Opinion No. 8 only minimally improve uniformity between companies?

> What economic consequences of SFAS No. 87 were suggested in the chapter?

> Given the evidence from the research in the stock market, does it matter whether pension information is disclosed in the formal financial statements or as supplemental disclosure?

> Why is the aspect of conveyance of leases emphasized in capital leases and the contractual element emphasized in operating leases?

> The equity method reports neither the investor’s cost nor the market value of the investment. Do you believe the equity method provides useful information? Why or why not?

> Compare proportionate consolidation with capitalizing of all leases extending beyond a year, another example of rigid uniformity.

> Why would proportionate consolidation result in rigid uniformity for intercorporate equity investment accounting?

> Why is there a pension accounting problem with defined benefit pension plans, but not with defined contribution plans?

> The logic of pooling rests heavily on the assumption that no substantive economic transaction occurs between the combinor and stockholders of the combinee. Evaluate this assumption.

> Review the evolution of capitalization criteria in lease accounting standards. Why did APB Opinion No. 5 have little impact? What impact has SFAS No. 13 had? Has there been an underlying theme in the development of lease accounting?

> Are there relevant circumstance differences between purchase and pooling of interests? Explain

> ”All leases beyond a year be capitalized!” Evaluate this position.

> How might standards setters address the concerns that Gordon and Gallery (2012) highlight related to pension accounting comparability?

> To qualify as a liability, a past transaction must exist. Is this the case with pensions and OPEBs? How does the use of financial statements for predicting future cash flows as opposed to evaluating management performance enter the picture?

> Novy-Marx and Rauh (2011) estimate state employee pension liabilities in the United States. What thoughts do you have on their findings?

> Zechman (2010) studies firms using synthetic leases. How might her findings influence the setting of lease accounting standards?

> Biggs (2010) presents a bleak picture for future generations attempting to meet the obligations related to public pension plans (e.g., State of New York; Jefferson County, Alabama)). How does his logic hold up when reviewing U.S. public corporations?

> If you had to choose among the current method of consolidation for combinees where the combinor owns at least 50 percent, the new entity approach, or proportionate consolidation, which would you choose? Explain.

> 1. Human Genome Sciences, Inc., a biopharmaceutical company, discovers, develops, and markets new gene and protein-based drugs. Its 1998 annual report showed property, plant, and equipment net of accumulated depreciation of $20,965,000 with total net ass

> 1. Refer to Appendix 15-A. Assume that the firm is using projected accrued benefit cost funding. Suppose that a plan amendment was introduced during 2002 granting one year of prior service (for the year 2000) to each employee. Required: Determine the con

> Is the executory nature of lease contracts important in assessing lease accounting? How have leases been interpreted? Why might noncancellability override the executory nature?

> 1. Examine the 2001 and 2002 annual reports for a corporation having a financial subsidiary. (Your instructor may suggest a corporation on the EDGAR Website. http://www.sec.gov/edgarhp.htm). Determine the effect of SFAS No. 94 on operating ratios, profit

> Is there a measurement reliability (verifiability) problem with lease capitalization?

> How is representational faithfulness achieved in the capitalization requirements of SFAS No. 13?

> Does symmetry exist between lessors and lessees under SFAS No. 13? Should symmetry be a goal of lease accounting?

> What are the similarities and differences between leases and other means of property acquisition? How can these similarities and differences be reported in the financial statements?

> How has ERISA affected pension accounting?

> Why is there a “double counting” problem if the accumulated benefit obligation is used to measure the pension liability and what can be done about it?

> Explain how previous pension accounting standards were based on a revenue-expense approach to the financial statements.

> Is it inconsistent to use future salaries for service cost calculations and current salaries for minimum liability calculation purposes?

> What differences exist, relative to the use of future costs and future salaries, in the case of OPEBs (SFAS No. 106) and pensions (SFAS No. 87)?

> Why may companies not be indifferent to purchase and pooling accounting, and what do we know about this issue from research studies?

> How did the “give-and-take” differ between the FASB and its constituents in the drafting of SFAS No. 87 on pensions versus SFAS No. 106?

> What types of economic consequences may arise from accrual accounting for OPEBs in SFAS No. 106?

> What considerations may have motivated the FASB to grant a four-year transitional period in capitalizing pre-1977 leases meeting the capitalization tests of SFAS No. 13? What other political behavior is evident in the evolution of lease accounting?

> Research has shown that discount rates used by firms are generally above rates suggested by the FASB. Will this make the interest cost portion of pension expense higher or lower than if discount rates were lower? Why do you think firms favor using a high