Accountancy, asked by Dipu4478, 1 year ago

types of accounting theory

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Answered by perfect2003
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. Descriptive Theory: This type of accounting theory is of descriptive approach.It explains the causes and effects of the day-to-day events of our life. Descriptive accounting theory helps us to predict how an event will be treated in accounting from the study of the explanations as to the happening of that particular event.
2. Normative accounting Theory: Normative accounting theory is of the type surmon in nature.It is mainly concerned with the future acts in the light of the present daily phenomena. Normative accounting theory also evolves possible theories which are independent of current practice and help in solving critical problems in future. So, these theories are advises in nature.
3. Evaluative accounting Theory: The theory which helps to know about the quality and quantity of any object or event or the qualitative quantity and quantitative quality is known as an evaluative accounting theory. Evaluative theories also measure the qualitative quantity of the event concerned.
4. Communicative accounting Theory: There are some basic and fundamental theories which give us the exact forecast of events which are called communicative theories. So, we can guess any event if we have the knowledge of communicative accounting theory. Future forecast of events is also supplied by the communicative accounting theory.
5. Inductive accounting Theory: The accounting theory which examines and analyses the happenings of past events is known as inductive accounting theory. It is based on repeated experiments and informs us that similar events in future will result in similar consequences.
6. Deductive accounting Theory: The accounting theory which is prepared by the following the method of deduction is the deductive accounting theory. It shows us the future way of behavior regarding the happening of any special phenomenon. Deductive theories are generally formulated to achieve some particular goal.
7. Generally accepted theories: The fundamental theories which can be applied equally in all cases and are adopted by all are called generally accepted theories. These theories do not generally vary and produce more or less similar results in most cases.

Besides the above, there are other theories also in existence. But these are Philosophical Theories and are found in our ancient Indian Philosophy. There is no opportunity of discussing those theories in accounting


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