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APPRACHES IN THE FORMULATION OF ACCOUNTING THEORY
Post: #1

INTRODUCTION

In commerce, they believe that there is a solution to every accounting problem.No, it is far away from the truth because there are many issues remain unresolved After having the knowledge of mere accounting. To become of student of accounting in reaunderstanding the problems of accounting practice and profession. For this matter and reason, the Accounting theory is recommended. The accounting theory provides the knowledge of Generally accepted accounting principles (gaaps), contemporary issues and other Developments in the field.So we should understand theory and its main issues like .Theory , approaches of constructing the theory, need of Accounting theory.

Theory

A statement on belief expressed in a language.A coherent set of hypothetical, conceptual and pragmatic principles forming the general framework of reference for a field of inquiry.A set of premises which is logically related.

Accounting

The systematic recording, reporting, and analysis of financial transactions of a business. 

Accounting Theory

A set of interrelated concepts, definition and propositions that present a systematic view of  phenomena by specifying relations among variables with the purpose of explaining and predicting the phenomena.Logical reasoning in the form of a set of broad principles that provide a general framework of reference by which accounting practice can be evaluated and guide the development of new practices and procedures.

ACCOUNTING THEORY

Attempts to formulate a generally accepted accounting theory have not succeeded so far because of different assumptions ,methodologies and users. A useful way to study and assess accounting theory is to classify them according to the assumptions they rely upon.Some of the approaches that have proven to be the most useful are pragmatic ,syntactic, normative, positive, nutralistic approaches.


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