An Introduction to Accounting Theory

Description

Accounting is frequently viewed as a dry, cold, and highly analytical discipline with very precise answers that are either correct or incorrect.Nothing could be further from the truth. To take a simple example, assume two enterprises that are otherwise similar are valuing their inventory and cost of goods sold using different accounting methods. Firm A selects LIFO (last-in, first-out) and Firm B selects FIFO (first-in, first-out),giving totally different but equally correct answers.