Identify a positive theory (it can be about any area of accounting). Explain the identified theory and provide an example of a situation where the selected theory can be tested. Explain how the identified theory can be tested in the example you developed.
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Identify a positive theory (it can be about any area of accounting). Explain the identified theory and provide an example of a situation where the selected theory can be tested. Explain how the identified theory can be tested in the example you developed. Note: Positive Accounting Theory (PAT) is only one type of positive theory. The question relates to any positive theory in accounting. Can you prove a theory of accounting? Discuss in relation to both normative and positive theories. When formulating your answer explain the difference between positive and normative theories, providing at least one example from accounting.
