"The Main Difference Between Normative and Positive (Accounting)theories Is That

question 36

Essay

"The main difference between normative and positive (accounting)theories is that normative theories are prescriptive,whereas positive theories are descriptive,explanatory or predictive".J.Godfrey,et el,'Accounting Theory',7^th Ed.p.29.
Explain and discuss the quotation.Include in your answer an opinion as to whether the two approaches are compatible or incompatible.

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Definitions:

Generativity

In Erikson's theory of psychosocial development, a stage where adults seek to contribute to society and support future generations.

Ego Integrity

A sense of completeness and fulfillment in life reached in old age, according to Erik Erikson's theory of psychosocial development.

Middle-Aged

A life stage typically between the ages of 40 and 65, characterized by transitions in physical, psychological, and social domains.

Identity Moratorium

A stage in identity formation where an individual explores various options but has yet to make a firm commitment to any specific identity.