Which of these characteristics is the least important for an accounting theory to be considered acceptable?
A)How well the accounting theory has been constructed
B)How acceptable the implications of the accounting theory are
C)How prescriptive the accounting theory is in relation to accounting practice
D)How well the accounting theory explains and predicts reality

Question

Quizplus · Accepted Answer

While all of the characteristics listed are important for an accounting theory to be considered acceptable, how prescriptive the theory is in relation to accounting practice is the least important. This is because a theory can still be acceptable even if it does not provide specific guidance on how to apply it to accounting practice. The other characteristics listed are more essential for an accounting theory to be considered acceptable.

Which of These Characteristics Is the Least Important for an Accounting