The paper "Accounting Theory and Standards " is a great example of a finance and accounting assignment. Accounting theory provides some disciplinary guidelines which help to examine the frameworks, assumptions and methodologies of accounting principles. An accountant operates all the accounting procedure within a broad socio-economic environment. An accountant cannot be able to control all the aspects which are related to this procedure only by using his knowledge. In this case, some conceptual guidelines are required for compartmentalizing the whole procedure. Again it is very difficult to discuss one particular topic without relating with other areas of knowledge.
So it is not possible for one person to complete the whole cycle. The accounting method is one scientific method of classifying, recording and summarizing transactions in such a way that the transactions are easily understandable by any person related to any particular company and its external stakeholders such as auditors, shareholders, government etc. The financial position of an organization and the operating result of a business entity can be determined by using such a method (Banerjee, 2009). Accounting theories help to determine the amount and nature of income, the increase or decrease in the volume of capital employed, the nature and amount of actual losses, possible losses and expenses, the values and nature of outstanding liabilities & assets owned, any specific amount due to the business and their nature, any specific amount due to be paid to the government and their nature, the reports regarding the interpretation of the financial results of a business entity etc.
Objectives of accounting theories are – to check the fraud cases and misappropriation of money, to detect any defalcations, to confirm the arithmetical accuracy of all the books of accounts, to detect various errors and rectify those errors through the appropriate entries in the journal proper, to find out the net profit or net loss or deficit /surplus for any particular period, to furnish information regarding cash & credit; purchase & sale, to find out the position of liabilities and assets on a particular date, to help the management by supplying financial reports, relevant data and accounting ratios; to maintain various ledger accounts in more efficient way etc (Carmichael and Graham, 2012).
Banerjee, A. 2009. Financial Accounting. New Delhi: Excel Books India.
Brown, P. 2013. Financial Accounting and Equity Markets: Selected Essays of Philip Brown. London: Routledge.
Carmichael, D. and Graham, L. 2012. Accountants' Handbook, Financial Accounting and General Topics. Beijing: John Wiley & Sons.
Deegan, C. 2009. Financial Accounting Theory. New York: McGraw-Hill.
Dworsky, L. 2009. Understanding the Mathematics of Personal Finance: An Introduction to Financial Literacy. New Jersey: John Wiley & Sons.
Kimmel, P., Weygandt, J. and Kieso, D. 2010. Financial Accounting: Tools for Business Decision Making. Beijing: John Wiley & Sons.
Weil, R., Schipper, K. and Francis, J. 2012. Financial Accounting: An Introduction to Concepts, Methods and Uses. Boston: Cengage Learning.