Which of the following is correct in respect of Positive Accounting Theory?
A) The opportunistic perspective is ex-post, and the efficiency perspective is ex-ante.
B) The opportunistic perspective is ex-ante, and the efficiency perspective is ex-post.
C) Both the opportunistic and efficiency perspectives are ex-ante.
D) Both the opportunistic and efficiency perspectives are ex-post.

Question

Quizplus · Accepted Answer

Positive Accounting Theory states that individuals are opportunistic and will act in their self-interest. The opportunistic perspective, therefore, is focused on explaining ex-post behavior, meaning that it is based on past events. On the other hand, the efficiency perspective is focused on explaining ex-ante behavior, meaning that it is based on future events. Therefore, option A is correct in stating that the opportunistic perspective is ex-post, and the efficiency perspective is ex-ante.

Which of the Following Is Correct in Respect of Positive