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May 10, 2023
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PAT which is considered as the most significant tool because it gives full information regarding to the actual transaction which take place in business world (Gunderson and, 2013). This method help to convert all accounting transaction and make effective predictions about the accounting entries. It is also considered as the scientific methods which helps to organization to make intellectual decisions` and also assist to understand the real cause of effect relationship. As according to the concept, of positive accounting to the manager and firm need to choose such accounting methods through these concepts firm can represent their won performance significantly but these concepts has some positive and negative impacts (Ball, 2013). This report make analysis on the Positive Accounting theory and critically evaluate it in effective approach. Along with this report also make analysis on the Hypotheses and their effectiveness of Pat model. In the last it make analysis on the limitations of PAT article will be described in the present report.

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