Normative vs Positive Accounting Theory: Differences, Advantages, and Challenges
VerifiedAI Summary
This report discusses the differences, advantages, and challenges of normative and positive accounting theory. Normative accounting theory focuses on subjective approaches to characterize a firm's financial future, while positive accounting theory is based on data collection and analysis. The report also covers the advantages and disadvantages of each theory, as well as the challenges faced in their implementation.