Which of the Following Is Not a Criticism of Positive

question 17

Multiple Choice

Which of the following is not a criticism of Positive Accounting Theory?

• A) It is based on the assumption that all action is driven by wealth maximisation
• B) It is not value-free
• C) It has developed little in the past thirty years
• D) Its claims cannot be objectively verified

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Definitions:

Net Cash Flow

Net cash flow is the difference between a company's cash inflows and outflows over a specific period, providing insight into the company's liquidity and financial health.

Credit Sales

Sales for which payment is not received at the time of purchase but is instead deferred to a later date, often involving the use of credit terms.

Accounts Payable Period

The average amount of time it takes for a business to pay its invoices from suppliers and vendors, typically measured in days.

Cash Expenses

Outflows of cash within a certain period for operational activities, excluding non-cash expenses like depreciation.