Accounting and Management Theories Homework Help: the Answers You’re Seeking
About Accounting Theories:
Before we embark on a journey to decipher all the accounting and management theories, it is important for students to understand what these accounting theories actually are. Accounting theories are a group of methods and assumptions which are used to study and to make practical applications of the various financial principles operating in a company/ business organization. This would involve analyses of the accounting practices as they were in the beginning, as well as a consideration of the accounting principles as they are in the present times (often having undergone several changes since their foundation). Financial reporting and financial statements are worked out using the accounting theories.
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Key features of accounting and management theories:
Accounting theories prioritize a qualitative analysis and this result in a utilitarian outcome because every all the financial reports and statements based on these theories are supposed to provide useful information which will help the management to arrive at right decisions. The theories are usually flexible and this ensures that they yield effective information even when the business environment undergoes certain changes.
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