Conceptual Frameworks Provide Prescription So They Are Considered to Be

question 2

Multiple Choice

Conceptual frameworks provide prescription so they are considered to be:

• A) Normative theories of accounting
• B) Positive theories of accounting
• C) Decision usefulness theory of accounting
• D) None of the given options are correct.

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Definitions:

Average Rate

A term often used in finance to denote the mean of various rates of interest or exchange rates over a given period.

Capital Investment

Funds invested in a business by the owners or partners for long-term growth and financial stability.

Net Cash Flow

The amount of cash generated or used by a business in a given period, considering cash inflows and outflows from operating, investing, and financing activities.

Revenues

The overall income produced through the transaction of goods or services pivotal to a firm's core operations.