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Accounting Theory: An Introduction Accounting is one of the most important subjects of commerce stream which actually is an art of recording, classifying, and summarizing in a significant manner...

Accounting Theory: An Introduction

Accounting is one of the most important subjects of commerce stream which actually is an art of recording, classifying, and summarizing in a significant manner in terms of money, transactions, and events. It can be defined as the science of data collection linked to business transactions in a specific manner to show the exact status of the business at a particular period of time along with any surplus or deficiency which has accrued in that period. On the other hand, accounting theory may be defined as logical reasoning with a set of broad principles that provide a general frame of reference for better practice and evaluation of accounting.

So, the status of work can be imagined and workload at the same time. A single error can lead to blunders in accounting. To help in doing your calculations and writing your assignments we BookMyEssay through Accounting Assignment Help is here to help you out with the best assignments and accurate results.

Framework of basic Accounting Theory Assignments:

  1. Find a specific socio-economic problem: The topic of assignment should deal with the prevailing social and economic problem, should provide information that is useful for making business and economic decisions. And underlying theories of accounting should recognize the accounting rules should be flexible enough to allow changes as the environment changes.
  2. Quantitative characterization & analysis: The conceptual framework of accounting that information or quantitative data collected should be relevant, reliable, comparable and consistent. Standard quality in data analysis can be enhanced by following standard rules of accounting theory.
  3. Assumptions: Accounting theory operate on four assumptions,
  • The economic entity assumption, says that the activities of a business are separate from the actions of the owner.
  • The going concern assumption focuses on when financial statements are formed, it is assumed that the business will be continued without the threat of bankruptcy.
  • The monetary unit assumption, states users to denominate the financial statements in some sort of numerical currency related to the business.
  • The periodicity assumption assumes to break the activities of a business into fiscal periods with recurring financial reporting on a monthly or annual basis.4. Principles: Accounting principles need to be loyal to the historical cost and matching principles which states that assets should be purchased at historical cost and matching principle, a product of accrual accounting, requires that revenues and expenses are matched into the period in which they occur.

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