What is the difference between positive and normative accounting theories?
A. Normative accounting theory specifies the prediction rules for items.
B. Normative accounting theory predicts what is expected to occur rather than explaining what should occur.
C. Positive accounting theory explains what should occur.
D. Normative accounting theory explains what should occur instead of predicting what is expected to occur.
Answer:D
What is the difference between positive and normative accounting theories?
A. Normative accounting theory specifies the prediction rules for items. B. Normative accounting theory predicts what is expected to occur rather than explaining what should occur. C. Positive accounting theory explains what should occur. D. Normative accounting theory explains what should occur instead of predicting what is expected to occur.