Which of the following is not true regarding accounting theory?
A)It includes concepts, valuation models, and hypotheses.
B)It is developed and refined by the process of accounting research.
C)It is concerned with improving financial accounting and statement presentation.
D)It is concerned with insuring that managers and investors are in agreement on how to improve financial statements.

Question

Quizplus · Accepted Answer

Accounting theory is concerned with developing and refining concepts, valuation models, and hypotheses to improve financial accounting and statement presentation. However, it is not concerned with insuring that managers and investors are in agreement on how to improve financial statements. That is the role of financial reporting standards and regulations.

Which of the Following Is Not True Regarding Accounting Theory