Which of the Following Statements Is Not True About Positive

question 21

Multiple Choice

Which of the following statements is not true about Positive Accounting Theory?

• A) It is used to distinguish research aimed at explanation and prediction.
• B) It is designed to explain and predict which firms will, and which firms will not, use a particular method, and also prescribes which method a firm should use.
• C) It focuses on the relationships between the various individuals involved in providing resources to an organisation, and how accounting is used to assist in the functioning of these relationships.
• D) One of the key theories that underpins Positive Accounting Theory is Agency theory.

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Definitions:

Life-Span Perspective

An approach to the study of human development that includes all phases, from conception to death.

Conception

The moment when a sperm fertilizes an egg, leading to the beginning of pregnancy.

Multi-Directional Development

The concept that human development occurs in different directions and not in a linear fashion, showing gains and losses across the lifespan.

Continuity

The principle or quality of maintaining a consistent state or operation over time, often considered in contexts such as development, history, or processes.