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Essay: Understanding Basic Framework of Accounting

Posted by admin in Essays on Business Studies | Sample Essays

Sample Essay

The different theories of accounting presented in this paper are quite important in order to understand the basic framework of accounting. The differences in these accounting theories have been highlighted to emphasise the individual importance of these theories and differences in implementation are highlighted in lieu of a practical example of historical cost approach and fair value approach.

It is concluded from the analysis of these theories that accounting procedures cannot be effectively performed without appropriate knowledge of accounting theories and several accounting theories need to be understood individually for effective application to accounting procedures.

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