Question

Discuss the relation between accounting theory and accounting practice

Answer 1

in accounting theory there are no untidy loose ends

in accounting practice  balance there are times when the only way to get accounts to balance at the time of activities

Answer 2

Explaining and predcting an accounting practice is called as Accounting Theory. The process of recording the day to day financial transaction is called as Accounting Practice.

Let's discuss more about the approaches of Accounting Theory and Accounting Practices:

• Accounting Theory: The perception that makes use of speculations, frameworks, and methodologies withinside the observe of monetary reporting is called Accounting Theory. It is a systamatical principal which undergo certain certain principles.
• Accounting Practice: It is vital to provide the legally required annual statements of the company in case of Accounting Practice. it helps to track the income and expences of a company and ensure a statutiory compliance of a business. As per GAAP the daily accounts are recorded correctly.