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Positive Accounting Theory (PAT) and Agency Theory are theories that explain accounting practice. a) Discuss why they are referred to as descriptive or positive

Positive Accounting Theory (PAT) and Agency Theory are theories that explain accounting practice. a) Discuss why they are referred to as descriptive or positive theories of accounting. b) Identify three (3) underlying assumptions of PAT and Agency Theory. c) Identify two (2) criticisms of PAT and critically evaluate how they can improve accounting practice (5 marks) (9 marks)

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