Which of the following is not a relationship focused on by positive accounting theory?
A) debt contracts.
B) political contracts.
C) managerial contracts.
D) creditor contracts.

Question

Quizplus · Accepted Answer

Positive accounting theory focuses on the relationships between managers, shareholders, and other stakeholders, such as lenders or creditors. Debt contracts, political contracts, and managerial contracts are all relationships between managers and these stakeholders that are studied under positive accounting theory. However, creditor contracts are not typically studied under positive accounting theory as they primarily involve the relationship between the lender and borrower, rather than the manager of the borrowing company.

Which of the Following Is Not a Relationship Focused on by Positive