In Evaluating Theories of Accounting,which of the Following Is Not

question 6

Multiple Choice

In evaluating theories of accounting,which of the following is not true?

• A) Different theories are often the result of working in different paradigms, which provide greatly different perspectives
• B) Positive accounting theory is an example of a theory that is value free
• C) Selecting a theory, topic, design or method for research, is based on value judgements
• D) All theories of accounting, and assumptions on which they are based, are abstractions of reality, and so choice is based on how closely the theory fits our own perceptions

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Definitions:

Market-Based

Economic systems or policies that are reliant on the forces of supply and demand rather than governmental interventions to allocate resources.

Command-And-Control Policies

Government interventions that directly regulate permissible levels of emissions or methods of production, through mandates or restrictions.

Externalities

Financial repercussions impacting individuals who are not primary participants, with effects ranging from beneficial to harmful.

Market-Equilibrium

A condition where market supply equals market demand, resulting in stable prices where the amount produced matches consumer demand.