ACC706: Accounting Theory & Practice Tutorial 2 Questions 1. Continuously Contemporary Accounting (CoCoA) relies on the notion of the capacity to adapt. What is the capacity to adapt and how it is determined? 2. The decision-usefulness approach to theory development can be used to develop theories of accounting. a) Explain what is meant by the decision-usefulness approach to theory development. b) How can the decision-usefulness approach relate to accounting theory formulation? c) Give two examples of decisions that require data obtained from accounting reports. 3. There are some misconceptions that exist when applying scientific approach to accounting. Discuss these misconceptions. 4. Explain the decision process model and contrast financial instrumentalism and realism. 5. Give an example of the type of issue that might be resolved by using the following theories of accounting: a) Scientific approach b) Naturalistic approach c) Normative approach d) Positive approach THE END