How Can Theories Be of Benefit in Accounting

question 3

Multiple Choice

How can theories be of benefit in accounting?

• A) they assist us to improve accounting practice and they provide principles to take into account when taking action or making decisions
• B) they help to identify problems and deficiencies with current accounting practice but do not assist us in improving accounting practice
• C) they assist us in describing and explaining current accounting practice only
• D) they assist us to predict and improve accounting practice only

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Definitions:

National Character

The idea that people in different cultures have different personalities.

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, and a desire to do a task well.

Freudian Theory

Freudian Theory postulates the existence of unconscious mental processes, sexual and aggressive instincts, and the defense mechanisms of the psyche.

Reality Principle

The reality principle is a psychoanalytic concept describing the process of delaying gratification of desires when necessary, based on the understanding of the constraints of the physical and social world.