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Understanding Accounting Theories and Their Importance

   

Added on  2020-07-23

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Whether accounting clientsshould study accountingtheory
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Table of ContentsINTRODUCTION...........................................................................................................................1Essay on Accounting Theory..................................................................................................1CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
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INTRODUCTIONAccounting is one of the crucial aspect of any business concern by which each and everyfinancial transaction done by company are summaries, analyse and recorded in the books ofaccount. It includes various method and concepts that are use during preparation of financialstatements of the company (Godfrey and et. al., 2010). The project is about an essay report basedon accounting theories and how they are helpful in coming time for new generation to managetheir business operations.Essay on Accounting TheoryTheories of accounting are said to be a set of assumptions and method those are use in thestudy and utilization of financial reporting concepts. It includes various objectives and theoriesthat are related with the financial transaction and recording of entries under the books ofaccounting through using various statements that would provide relevant information those areuseful in making valuable decision-making. Accounting is the techniques which is use by everyorganisation to manage and control there financial transaction and statements those are done in aaccounting year. In accountancy system it is use as important aspect to manage their work asfollowing proper guidelines those are based on accounting theories. It is related with researchthat are conducted through using proper tools and techniques of accounting. The major aspect of this theory is that provide accountant proper knowledge to analysethe data and other accounting issues. It will be helpful for students to increase the thinking ofpresent accounting problems those are related with environmental issues and social welfare. Themajor part of the theories are affecting performance of the students or other shareholder in thereprofessional ability in which they are involve with attention of people engaged in the researchwork. In accounting books it has been clearly indicated that such kind of issues which is relatedwith accounting concepts. The major part of accounting is auditing, professional attitudes andaccounting principles and standard. Accounting is a dynamic in nature which means it can be changes according the situationthat exist in company. The information regarding accounting features are consist of relevanceand reliability and consistency that would help to increase the accounting efficiency. Some theaccounting data can impact usefulness of accounting system those are: understandability,materiality and conservatism. The relevance and faithful presentation are based on key qualities1
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