Accounting Theory Deductive method Presented to : Dr.Mahoud nassar By Abeer Atef 201610249 Spring 2019/2020
The deductive method The deductive method of reasoning in accounting is the process of starting with objectives and postulates and from these deriving logical principles that provide the bases for concrete or practical applications. The practical applications and rules are derived from the logical reasoning; the postulates and logically derived principles should not merely support or attempt to explain accounting conventions or currently accepted practice. The deductive method process 1. Deducing hypothesis from theory. 2. Formulating hypothesis in operational terms and proposing relationships between two specific variables 3. Testing hypothesis with the application of relevant method(s). These are quantitative methods such as regression and correlation analysis, mean, mode and median and others. 4. Examining the outcome of the test, and thus confirming or rejecting the theory. When analysing the outcome of tests, it is important to compare research findings with the literature review findings. 5. Modifying theory in instances when hypothesis is not confirmed.
- Fall '15
- Logic, Abeer Atef