Asked by Devon Westerlund on Jul 29, 2024
Verified
Normative theories are developed using the following process:
A) Principles Assumptions Objectives Definitions/Actions.
B) Objectives Definitions/Actions Assumptions Principles.
C) Definitions/Actions Principles Assumptions Objectives.
D) Objectives Assumptions Principles Definitions/Actions.
Normative Theories
Theories that prescribe how the world should be or how ethical dilemmas should be resolved, based on values and principles.
- Understand the role and development of normative theories in accounting.
Verified Answer
ZK
Zybrea KnightAug 04, 2024
Final Answer :
D
Explanation :
Normative theories typically start with setting objectives (what we aim to achieve), then move on to assumptions (what we believe or take for granted), followed by principles (the fundamental truths or propositions that serve as the foundation for a system of belief or behavior), and finally, definitions/actions (clarifying terms and deciding on actions to meet the objectives). This logical progression ensures that the theory is built on a solid base of what is aimed to be achieved, grounded in certain beliefs, guided by fundamental truths, and operationalized through clear definitions and actions.
Learning Objectives
- Understand the role and development of normative theories in accounting.
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