The major focus of the normative accounting theories during the period 1956 - 1970 was:
A)Refining accounting practices
B)The impact of changing prices on the value of assets and the calculation of profit
C)Providing explanations of accounting practices
D)The broader sociological implications of accounting numbers

Question

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During the period 1956 - 1970, the major focus of the normative accounting theories was on the impact of changing prices on the value of assets and the calculation of profit. This was because during this period, there was a lot of inflation and accounting practices needed to adapt to reflect the changing economic environment. The normative accounting theories attempted to provide guidelines on how to account for changing prices, so that financial statements would be more accurate and informative.

The Major Focus of the Normative Accounting Theories During the Period