Accounting Standards Board University of Phoenix Accounting Theory and Research Jun 13‚ 2009 Accounting Standards Board To address the increasing challenges of legislating those governs our society today‚ “countries all over the world have begun to outsource rulemaking to bodies consisting of people familiar with the subject. For that reason‚ policymakers rely on private entities to establish financial accounting and reporting standards” (Donald Kieso‚ 2003‚ Intermediate Accounting). The
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Financial Theories Overview Financial Theories Overview This paper will include an overview of 10 financial theories incorporating both germinal and current research. In addition‚ each financial theory will include a general description‚ current examples‚ and significant attributes. Table 1 Financial Theories Financial Theories | Description | Current Examples | Significant Attributes | 1. Efficiency Theory | Eugene Fama defined efficient markets as “a market where there are large
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Valentina Uribe‚ Laura Gonzalez CHAPTER 5 CASE STUDY 1. What needs does Pixar appeal to through its commitment to creative innovation and excellence? We think Pixar appeal to these “equivalent” need theories: McGregor’s Y Theory‚ Aldefer’s growth need‚ McClelland’s need for achievement and Maslow’s self-actualization such as creativity‚ spontaneity and problem solving through its commitment to creative innovation and excellence. Self-actualizers live creatively and fully sharing their potentials
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STUDENT NO: …………………………... SEMINAR TUTOR …………………………... Introduction Accounting is concerned with providing both financial and non-financial information that will help decision makers to make good decisions. An understanding of accounting therefore requires an understanding of the decision making process and an awareness of the users of accounting information. The major purposes of accounting are to formulate overall strategies and long-run plans. Resource allocation decisions such
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Problems: 8.1: Data for Newark General Hospital (In Millions of Dollar): | |Static Budget |Flexible Budget |Actual Result | |Revenues |4.7 |4.8 |4.5 | |Costs |4.1 |4.1 |4.2 | |Profits
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Reading 1.2 - Accounting theory and development Accounting Theory Construction with Inductive and deductive approach Deductive approach vs. Inductive approach in accounting theory construction Deductive reasoning entails a valid argument in which it is impossible to assert the premises and to deny the conclusion without contradicting oneself. Deductive approach to accounting theory construction begins with establishing the objective of accounting. Once identified‚ definitions and assumption
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Positive Accounting Theory • Sometimes abbreviated as PAT • Explains and predicts accounting practice • Does not seek to prescribe particular actions • Grounded in economic theory • Focuses on the relationships between various individuals involved in providing resources to an organisation (agency relationship) • Owners and managers • Managers and debt providers Positive Accounting Theory • Assumptions of PAT • All individual action is driven
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that disposable income is less than zero. 7. At the point where the consumption schedule intersects the 45-degree line: A) the MPC equals 1. B) the APC is zero. C) saving equals income. D) saving is zero. 8. The saving schedule is such that as aggregate income increases by a certain amount saving: A) increases by the same amount as
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What is Positive Accounting Theory? Positive Accounting Theory is the branch of academic research in accounting that tries to make good predictions of real world events and translate them to accounting transactions. This contrasts with normative accounting theory‚ which that tries to recommend what should be done. Positive Theories try to explain and predicts actions such as which accounting policies firms will choose and how firms will react to newly proposed accounting standards. Positive
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prices patent or copyright protection Demand: Price sensitivity demographics Cost Considerations: Fixed and variable costs short-run or long-run In the long run‚ a company must price its product to cover its costs and earn a reasonable profit Most case: Company does not set the prices‚ competitive market does Price takers: the companies cannot set the price of gasoline by itself; the price of gasoline is set by market forces (the supply of oil and the demand by customers) Ex: farm products or minerals
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