Inductive Approach in Accounting Theory
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The document discusses the inductive approach in accounting theory, which starts with observations to form generalizations and principles. It contrasts this with the deductive approach and highlights the advantages of being free from preconceived models, allowing for innovative thoughts based on observed patterns. The conclusion emphasizes that accounting theory development often incorporates both inductive and deductive reasoning to enhance understanding and explanatory power.
Inductive Approach in Accounting Theory
- 1. Accounting Theory Inductive Approach in Accounting Theory Supervisor: Arun Devapura W Student: Kazim Ehsan M.Com 1ST Post Graduate Department of Commerce Teresian College 119/10/2019
- 2. Content Introduction to Induction Approach Meaning and Definition of Induction Approach Inductive VS Deductive Approach Application of Induction Approach in Accounting Theory References
- 3. Introduction Inductive reasoning, or induction approach , is one of the two basic types of inference. An inference is a logical connection between two statements: the first is called the premise, while the second is called a conclusion and must bear some kind of logical relationship to the premise.
- 4. Meaning & Definition… Meaning: Inductive approach, also known in inductive reasoning, starts with the observations and theories are proposed towards the end of the research process as a result of observations. Definition: Inductive Approach “involves the search for pattern from observation and the development of explanations – theories – for those patterns through series of hypotheses”
- 5. Inductive vs Deductive Approach
- 7. Inductive Approach in Accounting Theory Applied to the accounting, the inductive approach begins with observations about the financial information of business enterprises and proceeds to construct generalizations and principles of accounting from those observations on the basis of recurring relationship.
- 8. Inductive Approach in Accounting… The advantage of inductive approach is that it is not necessarily considered by a preconceived model or structure. The researchers are free to make any observation they may deem relevant. If the data have repetitive relationships, then some principles can be formed and in some cases new thoughts can be induced. If the observations are not influenced by current principles and actions, more innovative thoughts can be induced.
- 9. Conclusion In developing accounting theory, inductive approach is used more but most of the times accounting theories have been formed through combining deductive and inductive arguments. Accounting theorists generally begin with inductive reasoning and change their course towards a deductive approach in order to improve the theory through development of understanding and explanation power.
- 10. References: 1. https://research-methodology.net/research-methodology/research- approach/inductive-approach-2/ 2. The Role of Deductive and Inductive Reasoning in Accounting Research and Standard Setting: https://pdfs.semanticscholar.org/52f5/f38f2d481716e6e139b81115fa072f08d e68.pdf 3. Deductive Versus Inductive Reasoning: https://www.thoughtco.com/deductive-vs-inductive-reasoning-3026549
- 11. Thank You!