Which of the following is not an example of a normative accounting theory or research?
A) Conceptual frameworks of accounting
B) Critical perspectives of accounting practice
C) Capital markets-based (security price) research
D) True income theories

Question

Quizplus · Accepted Answer

Capital markets-based research is a positive accounting theory as it seeks to explain and predict actual behavior in the market. Normative accounting theories, on the other hand, prescribe how accounting should be practiced. A, B, and D are all normative accounting theories or research.

Which of the Following Is Not an Example of a Normative