BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In fact, it is important for accounting students to study and understand financial accounting theories. This is because; accounting theories aim to provide a coherent and systematic framework for investigating, understanding and/or developing various accounting practices.

Detailed explanation-2: -The most important aspect of accounting theory is usefulness. In the corporate finance world, this means that all financial statements should provide important information that can be used by financial statement readers to make informed business decisions.

Detailed explanation-3: -Financial accounting theory focuses on the “why” of accounting – the reasons why transactions are reported in certain ways. The majority of introductory accounting courses cover the “what” and “how” of accounting.

Detailed explanation-4: -Accounting theory is a set of concepts and ideas that guide the development and application of financial accounting practices. It helps to explain how financial accounting is used to create financial statements and how those statements are used to make decisions about the allocation of resources.