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What is Accounting Theory?
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Accounting theory is one which tries to describe the role of accounting and is composed of four types of accounting theory: classical inductive theories, income theories, decision usefulness theories as well as information economics.
1 Additional Answer
Accounting theory is the assumptions and methodologies as well as frameworks that are normally used to study and apply various financial principles. Accounting theories were first used in the 15th century and have grown since to the present body of knowledge.
Q&A Related to "What is Accounting Theory"
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The basic accounting formula is: assets = liabilities + owner's equity. This basic equation is the formula and theory behind the double-entry accounting system. Every entry will have
http://www.ehow.com/about_5121481_basic-accounting...
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Accounting theory helps accountants set goals and follow through with reasonable action. For example, if an accountant's theory includes the assumption that the business is going
http://www.ehow.com/info_8564067_accounting-theory...
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theory that commands the business operations. general operation of the business strategies.
http://wiki.answers.com/Q/What_is_commander_theory...
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Normative theory in accounting is theory about how net income 'should' be calculated. Positive accounting theory on the other hand is about observing/explaining and predicting accounting
http://wiki.answers.com/Q/What_is_the_theory_of_ac...
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