BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Normative period
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Parallel period
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Positive period
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Deductive period
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Detailed explanation-1: -The period 1956-1970 is labeled the ‘normative period’, called the formative period because it was the period when accounting theory attempted to establish norms for best accounting practice.
Detailed explanation-2: -What is Accounting Theory? An accounting theory is a notion that uses speculations, methodologies, and frameworks in the study of financial reporting (as well as how financial reporting principles are applied in the accounting industry).
Detailed explanation-3: -Pragmatic accounting (1800-1955) This period is often referred to as the ‘general scientific period’. The emphasis was on providing an overall framework to explain what accountants do, based upon observation of practice.
Detailed explanation-4: -The literature dealing systematically with normative accounting theory begins in the first decade of our century with two German scholars, Johann Friedrich Schar (1846-1924) and Heinrich Nicklisch (1876-1946).