A criticism of Positive Accounting Theory is that it tells us nothing about:
A) Whether the practice or method being used is the most efficient
B) Whether the practice or method being used is the most equitable
C) Which method a firm should use
D) All of the given options are correct

Question

Quizplus · Accepted Answer

Positive Accounting Theory is descriptive and focuses on explaining and predicting accounting practices, rather than prescribing which methods should be used or evaluating their efficiency or equity.

A Criticism of Positive Accounting Theory Is That It Tells