Case 1

Various research methodologies are available with which to study the development of accounting theory.

Required:

Discuss the deductive, inductive, and pragmatic research methods. Include in your discussion examples of accounting research that used each method.

Case 2

Agency theory provides an explanation for the development of accounting theory.

Required:

Discuss agency theory, including its basic assumptions, agency relationships, why the political process affects agency relationships, and why it does or does not explain accounting theory.

Taken from the text: Financial Accounting Theory and Analysis: Text and cases by Schrroeder, Clark and Cathey (Page 130)