Advantages Of Learning Accounting Theory

Accounting is a practice that operates throughout a wide range of socio – economic environment which is why the knowledge that is needed or should be possessed by an accountant cannot be accurately categorized. This is the reason why it is impossible to discuss an area of a particular concept without having complete knowledge of the other key areas of accounting as well. Therefore for an accountant, it is a must to not only know what accounting is but should also be able to comprehend it.Taylor and Shearing defines accounting as "An art and science of recording business transactions in a methodological manner so as to show: (a) the true state of affairs of a business of a particular period of time and, (b) the surplus or deficiency which has accrued during a specific period.” The theories of accounting explain why they are being practiced with a reason. Even Generally Accepted Accounting Principles cannot be changed entirely because they are being commonly used all around the world but they can be altered and refurnished according to the requirement of the adjustments in the Society or Economy. Now to resolve any actual accounting problem, every accountant must have adequate empirical experience adjoined with abundant theoretical understanding. The same way as all the theories are formulated on the basis of some reason, accounting theories have also been formulated based on a reason.

The advantages of learning accounting theory are plenty. A few have been explained below: