The research question that is most unlikely to be tested using positive methodology is:
A)Which firms are more likely to use straight-line depreciation rather than diminishing-balance depreciation?
B)How do changes in tax rules affect firm's leverage position?
C)Are firms with more intangible assets more likely to repurchase their shares?
D)Is the quantitative data derived from given sets of operations based on an overall accounting theory,useful to users of financial statements?

Question

Quizplus · Accepted Answer

Positive methodology focuses on empirical observation and testing of hypotheses based on quantitative data. The research question in option D is more focused on the usefulness of financial data to users and may require a more subjective approach that cannot be tested using positive methodology. Options A, B, and C can be tested using positive methodology since they are focused on observable and measurable variables.

The Research Question That Is Most Unlikely to Be Tested