1. A. Discuss the deductive, inductive and pragmatic research methods. Include i
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Question
1. A. Discuss the deductive, inductive and pragmatic research methods. Include in your discussion examples of accounting research that used each method.
B. Why do business managers prefer stable earnings trends?
C. Discuss several methods business manages might be used to smooth earnings?
2. Ernest Chemist in the production of chemical products and selling them locally. The corporation wishes to extend its market and export some of its products. It has come to the attention of the financial director that compliance with international environmental requirements is a significant precondition if it wishes to sell products overseas. Although the corporation has during the past put in place a series of environmental policies, it is clear that it is also common practice to have an environmental audit done form time to time, which will cost approximately GHS120,000. The audit will encompass the following:
i. Full review of all environmental policy directives?
ii. Detailed analysis of compliance with these directives?
iii. Report containing in-depth recommendation of those physical and policy changes that would be necessary to meet international requirements?
iv. The financial director of Ernest Chemical has suggested that the GHS120,000 be capitalized as an asset and then written off against the revenue generated from export activities so that the matching of income and expense will occur.
Comment on the proposed treatment of the environmental audit?
3.a. The advantages and disadvantages of harmonizing accounting standards were summarized in this chapter. Expand on these advantages and disadvantages?
Explanation / Answer
1A.
First let see deductive research metod.here we apply a general rule to a particular case.Deductive arguments are attempts to show that a conclusion must follow from a hypotheses. A deductive argument is valid if the conclusion follows necessarily from the hypotheses.
Aristotle, the first person we know who wrote down laws of deduction, gives this example of deduction:
Where as in inductive research meethod, we begin with some data, and then determine what general conclusion(s) can logically be derived from those data. In other words, you determine what theory or theories could explain the data. For example, you note that the probability of becoming schizophrenic is greatly increased if at least one parent is schizophrenic, and from that we conclude that schizophrenia may be inherited.
Examples of inductive logic:
where as in the pragmatic approach involves using the method which appears best suited to the research problem. Pragmatic researchers therefore give themselves the freedom to use any of the methods, techniques and procedures associated with quantitative or qualitative research. They recognize that every method has its limitations and that the different approaches can be complementary.
1.B. before going into why managers prefers stable income. lets first understand The time value of money (TVM). it is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.. hence the manager wants stable income otherwise he might loose money bcause of time value of money.
Research approach Ontology Axiology Research strategy Positivism Deductive Objective Value-free Quantitative Interpretivism Inductive Subjective Biased Qualitative Pragmatism Deductive/Inductive Objective or subjective Value-free/biased Qualitative and/or quantitativeRelated Questions
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