Prescriptive Theory

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August 31, 2024 4 min read Definitions

Normative Accounting Theory: Prescriptive Approach to Accounting

Accounting Economics Finance Normative Accounting Accounting Principles Financial Reporting Accounting Theory Prescriptive Theory

Normative Accounting Theory prescribes how accounting should be done, offering guidelines and principles for creating and evaluating accounting practices, contrasting with Positive Accounting Theory, which describes and predicts current practices.

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