According to the deductive approach to accounting classification,
A) accounting practices are analyzed and used to develop accounting groups.
B) international accounting groups are developed by linking environmental factors to national practices.
C) it is impossible to compare countries due to cultural differences.
D) disclosure groups are not as significant as are measurement groups in classifying countries.

Question

Quizplus · Accepted Answer

The deductive approach to accounting classification involves developing international accounting groups by linking environmental factors, such as legal systems, taxation, and financing systems, to the accounting practices observed in different countries. This approach assumes that these environmental factors influence accounting practices, thereby allowing for a systematic classification of countries based on these practices.

According to the Deductive Approach to Accounting Classification