In evaluating theories of accounting,which of the following is not true?
A) Different theories are often the result of working in different paradigms, which provide greatly different perspectives
B) Positive accounting theory is an example of a theory that is value free
C) Selecting a theory, topic, design or method for research, is based on value judgements
D) All theories of accounting, and assumptions on which they are based, are abstractions of reality, and so choice is based on how closely the theory fits our own perceptions

Question

Quizplus · Accepted Answer

Positive accounting theory is not value free as it is based on empirical observations of how individuals behave in the accounting setting. It does not prescribe what individuals should do, but it is not value free.

In Evaluating Theories of Accounting,which of the Following Is Not