Question: 1. What does the term "social reality" mean and why are accounting and accounting theory important examples of it?
2. Why do the value choices (entry value, exit v-alue, and historical cost) fall within the domain of accounting theory?
3. Of the three inputs to the accounting policy-making function, which do you think is the most important?
4. How can political factors be an input into accounting policy making if the latter is concerned with governing and making the rules for financial accounting?
5. Is accounting theory, as the term is defined in this text, exclusively developed and refined through the research process?