Difference between a positive and a normative theory

Assignment Help Accounting Basics
Reference no: EM132614620

Questions -

Q1. What is the difference between a positive and a normative theory of financial accounting, and is one better than the other?

Q2. What is an agency relationship and what is an agency cost? How can agency costs be reduced?

Q3. Would managers who have negotiated debt contracts with accounting-based covenants based around 'rolling GAAP' be relatively more likely to lobby an accounting standard-setter about a proposed accounting standard than would a manager from a firm who has negotiated accounting-based debt covenants that use 'frozen GAAP'? Why or why not?

Q4. If senior managers within a company were rewarded by way of accounting-based bonus plans then would they, or the owners/shareholders (or both), prefer the use of conservative accounting methods? Explain the reasoning for your answer.

Reference no: EM132614620

Questions Cloud

Have you ever known anyone who has too much personality : Other than in cases of brain injury or damage, is it possible to not have a personality? Alternatively, what does it mean to have too much personality?
What is the likely form of organisations of business : What is the likely form of organisations of your business? Give your business a name (b) a monthly cash budget for the second quarter of the year
What is the balance in Pablo capital account : The building is subject to a mortgage loan of P80,000, which is to be assumed by the partnership. What is the balance in Pablo capital account
Describe the pros and cons of online counseling : For this task, imagine that the local community college has asked you to write an article for a newsletter on the pros and cons of online counseling.
Difference between a positive and a normative theory : What is the difference between a positive and a normative theory of financial accounting, and is one better than the other
What is the highest price that barlow company should be : If unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additional pound of materials?
Journalize the issuance of the bonds on june : On June 30, Daughtry Limited issues 6%, 20-year bonds payable with a face value of $110,000. Journalize the issuance of the bonds on June
Find the adjusted cash balance at the end of August : A cheque for $200 to pay the electric bill was recorded on the books as $20. Find the adjusted cash balance at the end of August
Ethical implications of social responsibility program : Evaluate the ethical implications of pursuing a social responsibility program in terms of your stockholders and stakeholders.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd