Question

Speculate at what stage in its life cycle an accounting industry is: What preliminary evidence would...

Speculate at what stage in its life cycle an accounting industry is:

What preliminary evidence would you validate your hypothesis?

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Answer #1

Answer)

There are many factors that acts as a preliminary evidence for valuation the life cycle of an accounting industry.I would rather consider Profit earning.

If the profit is low or no profit from the beginning then I would consider that accounting industry is in Intial stage.

If the profit is growing compared to previous period then I would consider the accounting industry is in growth stage.

If the profit growth rate of profit is constant as compared to near past and at high point as compared to before period I would consider the accounting industry is in maturity stage.

If the profit is declining as compared previous periods constantly then I would consider the industry is in decline stage.

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