Which of the following statements is true about proving a theory?
A) An accepted positive accounting theory purports to provide sound predictions the majority of the time
B) An accepted positive accounting theory that purports to explain and predict, must hold true in all cases
C) Positive accounting theories do not need to be tested or proven
D) Accepted positive accounting theories have no 'exceptions to the rule'

Question

Quizplus · Accepted Answer

An accepted positive accounting theory is expected to provide sound predictions the majority of the time, but it is not necessary for it to hold true in all cases. Positive accounting theories are based on empirical observations and are subject to testing and revision. Therefore, it is not possible for a theory to have no "exceptions to the rule."

Which of the Following Statements Is True About Proving a Theory