BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Process of deductive
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Process of Ideas
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Process of Induction
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Process of Observation
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Detailed explanation-1: -What is Accounting Theory? An accounting theory is a notion that uses speculations, methodologies, and frameworks in the study of financial reporting (as well as how financial reporting principles are applied in the accounting industry).
Detailed explanation-2: -In accounting, the inductive approach begins by observing the financial information of the companies and progresses towards constructing accounting generalizations and principles out of those observations and re-occurring relations.
Detailed explanation-3: -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.
Detailed explanation-4: -Accounting theory provides a guide for effective accounting and financial reporting. Accounting theory involves the assumptions and methodologies used in financial reporting, requiring a review of accounting practices and the regulatory framework.