introduction of accounting theory
ADM 4342
Seminar in Accounting Theory
Turn OFF all cellphones!
Once class commences,
Computers should only be used for class work!
You have a responsibility to make the classroom environment respectful and conducive to learning.
Course Outline
Introduction to
Accounting Theory
What does
Accounting “Theory” mean? Defining “Theory”
(Webster’s New Collegiate Dictionary)
1. A plausible or scientifically acceptable general principle or body of principles offered to explain phenomena
2. A hypothesis assumed for the sake of argument or investigation
3. The general or abstract principles of a body of fact, a science or an art
The Purpose of Theories
• Theories are meant to explain why phenomena occur so that appropriate actions/responses can be taken
• To understand this concept, let’s examine the theory underlying the design and manufacture of a car
Why do Consumers Purchase a Car?
Drive To Work Impress Others Family Transport
Critical Attributes:
• Reliability
• Economy
• Safety
Critical Attributes:
• Style
• Performance
• Luxury Features
Critical Attributes:
• Capacity
• Safety
• Economy
Once the theory is determined, the appropriate response can be made to meet the consumer’s needs.
Theorizing about Accounting
•
Since its inception, the accounting profession has queried the purpose of accounting: 1. Why are financial statements produced? and therefore
2. What characteristics should financial statements exhibit?
Investigating the
“Theory” of Accounting
• This class will investigate the phenomenon of accounting and accounting practice
• The goal of the course is for students to develop an understanding of the accounting profession, its practice and its outputs from a critical and analytical perspective
The History & Evolution of
Accounting Practice
Alvin Toffler, in “The Third Wave” (1991), suggested that society undergoes radical changes
He argued that mankind
Seminar in Accounting Theory
Turn OFF all cellphones!
Once class commences,
Computers should only be used for class work!
You have a responsibility to make the classroom environment respectful and conducive to learning.
Course Outline
Introduction to
Accounting Theory
What does
Accounting “Theory” mean? Defining “Theory”
(Webster’s New Collegiate Dictionary)
1. A plausible or scientifically acceptable general principle or body of principles offered to explain phenomena
2. A hypothesis assumed for the sake of argument or investigation
3. The general or abstract principles of a body of fact, a science or an art
The Purpose of Theories
• Theories are meant to explain why phenomena occur so that appropriate actions/responses can be taken
• To understand this concept, let’s examine the theory underlying the design and manufacture of a car
Why do Consumers Purchase a Car?
Drive To Work Impress Others Family Transport
Critical Attributes:
• Reliability
• Economy
• Safety
Critical Attributes:
• Style
• Performance
• Luxury Features
Critical Attributes:
• Capacity
• Safety
• Economy
Once the theory is determined, the appropriate response can be made to meet the consumer’s needs.
Theorizing about Accounting
•
Since its inception, the accounting profession has queried the purpose of accounting: 1. Why are financial statements produced? and therefore
2. What characteristics should financial statements exhibit?
Investigating the
“Theory” of Accounting
• This class will investigate the phenomenon of accounting and accounting practice
• The goal of the course is for students to develop an understanding of the accounting profession, its practice and its outputs from a critical and analytical perspective
The History & Evolution of
Accounting Practice
Alvin Toffler, in “The Third Wave” (1991), suggested that society undergoes radical changes
He argued that mankind