Accounting is the body of knowledge and fuctions concerned with systematic originating,

authenticating, recording, classifying, processing, summarizing, analyzing, interpreting, and

supplying of dependable and significant information covering transactions and events which
are, in part at least, of a financial characters, required for the management and operation of an
entity and for reports that have to be sumitted there on to meet fiduciary and other
responsibilites.

Theory is a set of systematically interrelated concepts, definitions, and propositions that are
advanced to explain and predict phenomena or facts.

If we treat accounting as a science, accounting theory is a set of descriptive hypotheses as a

result of research by using a particular scientific method. If we treat accounting as a
technology, accounting theory is logical reasoning to explain and give reason about certain
accounting treatments ( in certain standard or tradition) and explaining the accounting
structure of certain region.