A theory that predicts that,if certain conditions are met then particular accounting practices will be observed,is an example of:
A) Positive Accounting Theory
B) Negative Accounting Theory
C) Normative Accounting Theory
D) Descriptive Accounting Theory

Question

Quizplus · Accepted Answer

Positive Accounting Theory is focused on predicting and explaining accounting practices based on certain conditions or factors. It is a descriptive theory that aims to provide explanations for why certain accounting practices occur in certain situations.

A Theory That Predicts That,if Certain Conditions Are Met Then