Search Methodologies and the Use of Accounting Information

Assignment 2: Research Methodologies and the Use of Accounting Information

Advanced Accounting Theory – ACC 563 003016

Dr. Dahli Gray

January 29, 2011

Assignment 2: Research Methodologies and the Use of Accounting Information

The deductive, inductive and pragmatic research methods

The deductive research approach is a research methodology based on logic. As the text states, “The deductive approach to the development of theory begins with establishing objectives.” (Schroeder, Clark, & Cathey, 2011, p. 113) This approach starts with general information to more specific. Accounting theory is developed with a general accounting premise and created through logical accounting principles. With deductive research, an accounting hypothesis is formed; data is then collected and tested. After testing the accounting data or ideas the researcher will be able to come to a conclusion based on the logical progress of the research process. (Hall, 2011)

The inductive research approach is just the opposite of the deductive research methodology. With inductive reasoning the researcher would start with a specific accounting observation and from there discover general accounting details and theory. This method is known for “going from the specific to the general.” (Schroeder, Clark, & Cathey, 2011, p. 113) The research steps start with an observation, from there if there are any patterns in observations they will be noticed and that will be the hypothesis. At this point the hypothesis can either be proven or disproven. (Jie, 2011)

Finally, the pragmatic approach is based on utility or usefulness. With this approach, once a problem has been discovered a researcher will develop a solution to that problem. It is a reactive verses proactive approach to discovering accounting theories therefore solutions should only considered tentative. (Schroeder, Clark, & Cathey, 2011)

Human information processing research

Human information processing [HIP] research...