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:

External Events

Occurrences happening outside of an individual that can affect mood, behavior, and perceptions.

Internal Factors

Influences that originate within a person, such as beliefs, values, and personal drive.

Generalized Expectancies

Beliefs or assumptions about how general traits or behaviors are likely to be rewarded or punished in various situations.

Reinforcement Value

The degree to which the outcome of a behavior increases the likelihood of the behavior's recurrence.