1. There are two traditional approaches to theory construction that provide an insight on how theories are constructed. These are the inductive approach and deductive approach.
a) Outline the steps involved in the above two approaches
b) State the difference between the two approaches.
2. “The modern rational organisation of capitalistic enterprise would not have been possible without two other important factors in its development: the separation of business from the household….and, closely connected with it, rational bookkeeping” (Max Weber on Capitalism, Bureaucracy and Religion).
Based on above quotation, provide arguments for and against accounting flourished capitalism. Then discuss the role of double-entry in the economic expansion.
Topic 2 – Week 4
1. Accounting theory may be defined as logical reasoning in the form of a set of broad principles that (1) provide a genera frame of reference by which accounting practice can be evaluated, and (2) guide the development of new practice and procedures.
a) State the three (3) purposes of Accounting Theory that can be derived from the above definition.
b) Briefly explain the relationship between accounting theory, accounting policy and accounting practice.
2. Evaluate three approaches stated below to theory construction that provide insight on how accounting theories are constructed. a) Ethical approach
b) Sociological approach
c) Economic approach
Topic 3- Week 5
1. In view of the international efforts towards globalization and harmonization of international accounting practices, Malaysia develops its framework in cognizant in material aspects of the international framework. Malaysian Accounting Standard Board (MASB) is responsible to develop a conceptual framework for Malaysia.
a) Explain why Malaysia, through MASB needs to develop its own framework?
b) State four (4) purposes of establishing conceptual framework