Which of the following statements is true about proving a theory?
A) An accepted Positive Accounting Theory purports to provide sound predictions the majority of the time.
B) An accepted Positive Accounting Theory that purports to explain and predict, must hold true in all cases.
C) A Positive Accounting Theory does not need to be tested or proven.
D) An accepted Positive Accounting Theory has no 'exceptions to the rule'.

Question

Quizplus · Accepted Answer

Positive Accounting Theory is designed to predict outcomes and provide explanations about why certain events occur. While it may not hold true in all cases, a sound theory should provide accurate predictions the majority of the time.

Option B is incorrect as no theory can hold true in all cases, and therefore, it is not a requirement for a theory to be accepted.

Option C is incorrect as any accepted theory needs to be tested and proven to ensure its accuracy and reliability.

Option D is incorrect as exceptions to the rule can exist in any theory, but it does not negate the overall validity of the theory.

Which of the Following Statements Is True About Proving a Theory