Question

Are objective accounting theories possible according to public interest, capture, and economic interest theory?

a) Yes, all theories support the possibility of objective accounting
b) No, public interest theory suggests objectivity is unattainable
c) Yes, capture theory argues for complete objectivity in accounting
d) No, economic interest theory contends that objectivity is subjective

Answer 1

According to public interest theory, objectivity in accounting is unattainable. Capture theory and economic interest theory also do not support complete objectivity in accounting.

Step-by-step explanation:

According to public interest theory, it suggests that objectivity in accounting is unattainable. This theory argues that individuals or organizations may have their own interests that can influence accounting practices. Capture theory does not argue for complete objectivity in accounting. It suggests that there may be certain stakeholders who have more influence and can shape accounting practices to serve their interests. Economic interest theory contends that objectivity in accounting is subjective, meaning that different people may interpret accounting information based on their own economic interests. Therefore, the correct answer is b) No, public interest theory suggests objectivity is unattainable.