CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Classification of accounting theory


Open in App
Solution

Accounting theory consists of all the accounting principles and methodologies. It is classified into three types:
1. Structural theory: It is also popularly known as Traditional or Classical theory. It describes the existing practices in accounting and the data collection structure and financial reporting process.
2. Interpretational theory: It is also known as Semantical theory that emphasizes on providing interpretations and gives a solid base for assessing accounting practices, making hypothesis and resolving accounting-based issues.
3. Behavioural theory: It is also called as Pragmatic theory that emphasises on decision-making and on the accounting group behaviour.


flag
Suggest Corrections
thumbs-up
6
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Importance of Management
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon