Accounting Theory: Frameworks, Assumptions & Models
Dive into the world of Accounting Theory — the conceptual structure that underlies how financial information is generated, interpreted, and regulated. This article presents a panoramic view of its purpose: unifying practices, resolving methodological debates, and guiding standards. Explore the differences among descriptive, normative, and positive theories, understand basic assumptions, and see how theory shapes real reporting choices. You’ll also see criticisms and current challenges affecting accounting theory. Ideal for students, professionals, or anyone curious about the “why” behind accounting rules.
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