Question 1 [7 Marks] What is the difference between a positive theory of accounting and a normative theory of accounting? Include examples. Question 2 [7 Marks] Do you agree that public interest theory of regulation has become the cornerstone of modern public economics and it has been used to justify much of the growth of public ownership and regulation in the past one hundred years? Explain your answer. Question 3 [8 Marks] Comment on the following statement: If a corporation releases an item of accounting information and there is no apparent change in company share price, the information is not relevant to the market and there is no point in disclosing such information again. Question 4 [8 Marks] What is the market for corporate takeovers and how would its existence encourage organisations to make accounting disclosures even in the absence of regulations?