QUESTION 1: What is the difference between a positive theory of accounting and a normative theory of accounting? QUESTION 2: Why would it not be appropriate to reject a normative theory of accounting because its prescriptions could not be confirmed through empirical observations? QUESTION 3: In the 1960's a number of accounting researchers concentrated on developing theories of accounting based on observing and documenting the behaviour of practising accountants. Do you think that such research is useful in improving the practice of financial accounting? Explain your answer. QUESTION 4: In your opinion, can accounting research be 'value free'? Explain your answer. PART B: ANALYSIS (2.5%) QUESTION 5 Word limit: Between 200 and 500 words. This word limit applies to this question as a whole and not to the individual components of the question. Refer to the article by Miglani et al. (2015) and answer the following questions: 1. What is the main theory that is being used to support this investigation? 2. What are the main predictions of this theory within the context of this study? 3. Is this a positive or normative theory? Explain your answer. 4. Are the results consistent with the theoretical predictions? Briefly explain whether this study provides empirical evidence to prove the underlying theory