Accounting Theory

1. In terms of theoretical foundations, how do you compare accounting to other disciplines such as economics, physics, mathematics, etc.?

2. Discuss three major challenges facing fair value accounting practices and their implications to the future fair value accounting.

3. Assuming the above challenges to fair value accounting were solved, why would you prefer fair value accounting over historical cost accounting?

4. Explain why we would not need an income statement if everything was accounted for under the fair market value system.