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Examlex · Accepted Answer

The Answer is a.The decision usefulness approach is a contemporary approach to accounting theory that has concentrated on users of accounting reports, their decisions, information needs, and information-processing abilities. This approach has been further dichotomized into decision models and decision-makers.
b.The characteristics of the decision-model approach are:
(1)They are normative and deductive.
(2)Some form of relevance for particular decisions by a particular user group or groups is stressed.
(3)The relevance criterion is instrumental in measuring the selected attributes of assets, liabilities, and income transactions.
Since decision-model approaches are deemed appropriate for communicating extremely relevant information for decision-making, an argument can be made that users must be educated to understand the method.
c.The decision-maker approach is descriptive and inductive. It attempts to find out what information is actually used or desired, the assumption being that the information that is desired should be supplied.

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