Which of the following statements is correct:
A) Accounting is only concerned with recording transactions and does not involve human behaviours.
B) Positive theories provide recommendations about what should happen.
C) Inductive reasoning starts with objective setting.
D) The conceptual framework is developed through a deductive approach.

Question

Quizplus · Accepted Answer

The conceptual framework is developed through a deductive approach, which means that it starts with the development of theoretical concepts and then moves to specific observations or applications. Option A is not correct as accounting also involves analyzing and interpreting financial information. Option B is incorrect since positive theories focus on explaining behaviors rather than providing recommendations. Option C is incorrect because inductive reasoning starts with observations and then moves towards developing generalizations or theories.

Which of the Following Statements Is Correct