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Research Methodologies and the Use of Accounting Information

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Research Methodologies and the Use of Accounting Information

Gregory Oliver Dorr

Professor Dr. Dahli Gray, CPA, CMA, CFE.

Advanced Accounting Theory-ACC 563

July 16, 2011


In the modern world of business we need more education in the business education fields such as: accounting, marketing, and economics to name a few. We will continue to use research methods and financial statement to base facts to create the most honest companies in America and worldwide. (Schroeder, et. P.113 2011) Deductive, inductive, pragmatic, and human information processing are just a few research areas that can help companies develop new strategies to empower businesses like Enron, Tyco, and World COM to make better financial decision in the future to keep profits in the positive. IBM made a fast look at the future several years ago, and now they are ahead of the game because they saw the need to outsource and sell some part of their business to overseas markets. They sold part of their computer division to Japan who named the new company Lenovo computers.

Compare and contrast the deductive, inductive and pragmatic research methods, discuss human information processing research and the consequences of its findings on accounting, describe all sources of accounting information that could contribute to an investor's decision to buy, hold or sell a stock , evaluate the sources just described and explain which is most important to a buy-hold-sell decision and why. It was stated one that deductive reasoning involves a valid argument in which it becomes difficult to claim an idea and to stop the ending without lying to one's self. You must first establish the objective of accounting when you use the deductive approach to accounting theory. It will formulate into definitions and assumption for concrete entry into the accounting world. Students and business people researching accounting must develop precise information to accomplish the objective based on assumptions and word defining. Again students and business people research and accounting topic must support a strong structure for obtaining the right solution too questions about accounting theory by explanations. (Schroeder, 2011) Deductive reasoning must go from the general to the specific in a logical manner. The researcher must use correct information and relate various component of the accounting process in the best way prescribe. In the deductive reasoning, the information in the research must be valid.

The general law or principles is supported from distinguish appropriate occasion which brings us to induction a method or reasoning. Here gain different experience called inductive approach which will be making observations and then drawing conclusions from it. The inductive reasoning goes from the specific to general. We can see the inductive reasoning when we look at ratio to determine if a company can pay debt from month to month. The author points out that the "research generalizes about the universe on the basis of limited observations of specific situations." He also states that "the intuitivist is to draw theoretical and abstract conclusion from rationalizations of accounting practice." The inductive approach starts with review about the economic data of the entity and proceeds to construct generalizations and principles of accounting from that observation on the basis of recurring relationship

Distinguishing features Analytic Synthetic

Reasoning Deductive Inductive

(Love, et. al 2003)The author implies to the reader that "the logic of argument using the deductive and inductive processes is a great way to resolve fraudulent cases. The forensic accountants mainly gather uphold information and clues; I am sure that forensic accountants use all types of technique s for financial crime investigation.

(Schroeder, 2011) I like the idea that pragmatic deals with the accounting process deal with a certain practice, and it is a system that follow guide line and patterns. (Anderson, 2007)For example "pragmatically, a taxable estate that includes future lottery payments may leave the estate with a tax liability and no available means to pay."



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