Question

Why would it not be appropriate to reject a normative theory of accounting because its prescriptions...

Why would it not be appropriate to reject a normative theory of accounting because its prescriptions could not be confirmed through empirical observation?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

conceptual framework of accounting is an example of a normative theory of accounting.Relying on various assumptions about the types or attributes of information useful fordecision making, The CFA provides guidance on how assets, liabilities, expenses, income andequity should be defined, when they should be recognized, and ultimately how they shouldbe measured.

Normative theories of accounting are the theories which are not necessarily based onobservation and therefore cannot (or should not) be evaluated on whether they reflectactual accounting practice because different people has different view and that’s whatnormative theories include. It includes different perspective of different people; it can becriticized but cannot be rejected.Word count

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In newton's theory of gravity light's path would not bend as it travelled near a star,...
In newton's theory of gravity light's path would not bend as it travelled near a star, because light is massless, and only particles with mass are affected by the force of gravity. Why does light's path bend around massive objects in general relativity? a) spacetime actually bends and the light follows a curved path through it b) it turns out that light actually has mass in general relativity c) the speed of the light makes it curve d) the light...
Why would it not be appropriate to use VO2 to calculate Q10 if cockroaches were endothermic...
Why would it not be appropriate to use VO2 to calculate Q10 if cockroaches were endothermic homeotherms? Metabolism would be relatively constant across the range of temperatures and Q10 would be zero. Body temperature would be relatively constant, so changes in VO2 would indicate thermoregulation, not the effect of temperature on metabolism. Q10 would not be relevant when the organism is in its thermal neutral zone (TNZ), but it would be relevant outside of the TNZ when metabolism is affect...
3. Which of the following would be included in accounting prot and/or economic prot? Explain why....
3. Which of the following would be included in accounting prot and/or economic prot? Explain why. (a) Revenue from beef sold $150,000 (b) Revenue from almonds sold $30,000 (c) Revenue from walnuts that would have been planted if almonds had not $40,000 (d) Rent that would have been received if grazing land had been rented out $10,000 (e) Production cost of beef $20,000 (f) Production cost of almonds: $10,000 (g) Salary at the best job you could have otherwise worked:...
SUMMARY THE PARAGRAPH Equity Accounting As noted above in the context of financial assets, difficulties can...
SUMMARY THE PARAGRAPH Equity Accounting As noted above in the context of financial assets, difficulties can arise when the standard setters invent ìprinciplesî that are not found in any conceptual framework and do not fit with other principles. An example relates to one of the most egregiously arbitrary rules in accounting: the use of a threshold interest of 20 percent of voting shares in the context of equity accounting. The alleged underlying principle of ìsignificant influenceî is sufficiently vague that...
a) Why would a company in the introductory stage of its life cycle be more likely...
a) Why would a company in the introductory stage of its life cycle be more likely to raise equity than debt? b). In what section of the cash flow statement could the following items be found: Debt Issuance Purchase of Plant Property and Equipment Dividends Sale of a piece of machinery Depreciation Accounts Receivable c). What are some of the reasons why a company with positive net income could have negative cash flow from operations?
Task In your accounting career you will be required to analyse current accounting issues and communicate...
Task In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume that you are the senior accountant working for a major firm. Question 1 - 9 marks (1,500 words) The CEO has forwarded to you an interesting article and requires you to provide her with a deeper theoretical understanding of the issues discussed so that she can fully engage in the...
Accounting Headline 7.11 An example of the effect of new accounting standards on existing debt covenants...
Accounting Headline 7.11 An example of the effect of new accounting standards on existing debt covenants New accounting standards could trigger debt covenants ALEXANDRA CAIN Companies with large fleets need to look at the real impact on their business, writes Alexandra Cain. A decade after the idea was proposed, it’s likely a new accounting standard will require businesses to recognise operating leases on balance sheets. Under existing accounting standards, operating leases are not recorded on balance sheets. Bringing these leases...
(complexity theory): let language C be: C = {<p,n> | p and n are natural numbers...
(complexity theory): let language C be: C = {<p,n> | p and n are natural numbers and there is no prime number in the range [p,p+n]} a)explain if the given explanation is good, or if it is bad, explain why: a professor wanted to prove that language C belongs to class NP like this: "for each word <p,n> that belongs to C, there is a confirmation that proves its belonging to the language: the confirmation is formulated by a non...
Michael just graduated with a degree in Accounting from State University. He worked hard in school...
Michael just graduated with a degree in Accounting from State University. He worked hard in school but could only achieve a 2.95 GPA because he worked 40 hours a week to pay hi sown way through college. Unfortunately, Michael was unable to get a job because the recruiters all had a 3.0 GPA cut-off point. Michael stayed with his college job for another year but is anxious to start his public accounting career. One day he reads about a job...
Why would Boeing outsource its electronics production and then bring its manufacture back in-house? In the...
Why would Boeing outsource its electronics production and then bring its manufacture back in-house? In the early 2000s, The Boeing Company (NYSE: BA) outsourced key portions of its aircraft manufacturing and design operations, including electronics and central computers. Beginning in 2007, Boeing’s 787 Dreamliner (a new model for Boeing) was assembled in the U.S., with global subcontractors assigned the work of assembling key sections of the 787. Subcontractors also worked on various software systems and electronics components for the 787....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT