Final answer:
The question refers to a confusion with the person mentioned; Charles Sprague is not associated with accounting theories. Instead, economists like Keynes and Friedman influenced economic theories which indirectly impact accounts practices and liability reporting.
Step-by-step explanation:
The question asks for an analysis of an accounting theory by Charles Sprague related to the development of the conceptual framework with an emphasis on liability reporting. However, there seems to be a confusion as Charles Sprague is not known for contributing to accounting theories; instead, contributors like Charles Cooley, Friedrich Hayek, Milton Friedman, John Maynard Keynes, and Adam Smith have impacted various areas such as sociology and economics respectively. The closest related contribution we can discuss in terms of the conceptual framework for accounting and liability reporting is the work of prominent economists like Friedman and Keynes, who influenced overall economic theories that can indirectly affect accounting practices and standards.
Regarding liability reporting specifically, economic theories that relate to market behaviors, fiscal policies, and business cycles could help inform the standards and practices that evolve within the accounting profession. For instance, Keynes' theories on government intervention in the economy could influence the way liabilities are reported and understood within an economic context with respect to governmental entities and firms.