Which of the Following Statements Is True About Proving a Theory

question 15

Multiple Choice

Which of the following statements is true about proving a theory?

• A) An accepted positive accounting theory purports to provide sound predictions the majority of the time
• B) An accepted positive accounting theory that purports to explain and predict, must hold true in all cases
• C) Positive accounting theories do not need to be tested or proven
• D) Accepted positive accounting theories have no 'exceptions to the rule'

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Definitions:

International Accounting Standards Board

An independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs).

IFRS

International Financial Reporting Standards are a set of accounting rules and standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

EU

A political and economic union of 27 European countries that are located primarily in Europe, aimed at fostering economic cooperation and collective regulation.

Securities Commissions

Governmental or regulatory bodies responsible for overseeing and regulating the securities and investments market, ensuring fair practices.