Which of the Following Statements Is Correct in Relation to Normative

question 25

Multiple Choice

Which of the following statements is correct in relation to normative theories?

• A) Normative theories often evolve as a result of research performed in relation to positive theories
• B) Facts about current accounting practice are not considered in the development of normative theories
• C) Normative theories are not likely to evolve from the consideration of positive theories
• D) Normative theories always evolve as a consequence or result of positive theories

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Definitions:

Protection

Measures or actions taken to safeguard against harm or damage, often in the context of legal rights, intellectual property, or personal safety.

Identification

The process of recognizing or establishing the identity of a person or thing, often through the analysis of identifying factors or markers.

Goods

Items or merchandise that are tangible, movable, and sold or used in commerce.

Contract

A legally binding agreement between two or more parties that outlines rights and duties and is enforceable by law.