Research using the Positive Accounting Theory approach investigated public trust deeds and found that in relation to revaluations they:
A) allowed revaluations but imposed very low debt/asset limits.
B) specified which assets may be revalued and who may conduct the revaluations.
C) generally did not permit revaluations.
D) allowed revaluations but specified the period between revaluations as being no longer than 2 years.

Question

Quizplus · Accepted Answer

Positive Accounting Theory often examines the regulations and constraints around financial reporting and asset management. In the context of public trust deeds, it's plausible that the rules would specify which assets can be revalued and who is qualified to conduct these revaluations to ensure transparency and accuracy in financial reporting. This approach helps maintain trust and integrity in financial statements.

Research Using the Positive Accounting Theory Approach Investigated Public Trust