Accounting Theory Case Study:
Accounting theory is the set of documents, methods, techniques, etc used for the appropriate functioning of the important branch of finance – accounting. Accounting is known to be the old discipline and sphere of economics, because people of the 15th century already spoke about it.
Accounting is applied for the regular work of every private and public firm controlling the information about the profit and expenditures, success and failure of the firm and with the help of the methods of statistics illustrates the objective picture of the financial condition of the firm. Accounting as a separate discipline appeared approximately in the 17th century when the trade and financial activity became the prominent activity of a successful country. Every firm wants to regulate its capital and keep the situation under control, so the tools and methods of accounting have been worked out to reach this control. It is obvious that accounting theory helps every company navigate and exist on the market successfully. Continue reading