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Contemporary Auditing

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.2: Lehman Brothers Holdings, Inc.

Problem 2Q

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What distinguishes positive accounting theory from
normative accounting theory?
a) It explains and predicts actual accounting practices
rather than prescribing rules
b) It only focuses on what should be done
c) It deals exclusively with tax accounting
d) It ignores actual business practices

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