The term
‘theory’ represents the coherent of hypothetical, conceptual, and pragmatic
principles forming the general frame of reference for a field of inquiry. We
can then define accounting theory as logical reasoning in the form of set of
broad principles that;
‘theory’ represents the coherent of hypothetical, conceptual, and pragmatic
principles forming the general frame of reference for a field of inquiry. We
can then define accounting theory as logical reasoning in the form of set of
broad principles that;
1. Provide a general frame of reference by
which accounting practice can be evaluated and
which accounting practice can be evaluated and
2. Guide the development of new practices and
procedures. Accounting theory may also be used to explain existing practices to
obtain a better understanding of them.
procedures. Accounting theory may also be used to explain existing practices to
obtain a better understanding of them.
But the
most important goal of accounting theory should be to provide a coherent set of
logical principles that form the general frame of reference for the evaluation
and development of sound accounting practices.
most important goal of accounting theory should be to provide a coherent set of
logical principles that form the general frame of reference for the evaluation
and development of sound accounting practices.
