Accounting is apprehensive with the classifying, recording and summarizing of financial transactions and happenings and interpreting the results thereof. It intends at providing information concerning the financial performance of a firm to its a variety of users such as owners, manager's investors, employees, and creditors, contractors of goods and services and tax authorities and assists them in taking significant decisions. The investors, for instance, may be interested in knowing the extent of profit or loss earned by the firm throughout a given period and compares it with the presentation of other similar enterprises. The dealers of credit, says a banker, may, as well, be interested in liquidity position of the enterprise. All these people look for accounting for suitable, useful and reliable information.
For creating the accounting information meaningful to its outside and internal users, it is significant that such information is comparable as well as dependable. The comparative nature of accounting information is required for both to make inter-firm comparisons, i.e. to see how a firm has executed as compared to the other firms, in addition to make inter-period comparison, i.e. how it has performed as compared to the preceding years. This becomes relatively possible only if the information offered by the financial statements is based on reliable accounting policies practices and principles. Such consistency is needed throughout the process of recognizing the events and transactions to be accounted for, measuring them, communicating them in the book of accounts, summarizing the results thereof and reporting them to the interested parties. This calls for developing a proper theory base of accounting.
According to its definition of accounting it is quite tough So as to give accounting assignment help to students online many tutors doing effort and giving their precious time for assignment help.
The importance of accounting theory need not be over-highlighted as no discipline can develop with no a sound theoretical base. The theory base of accounting be made of, concepts, principles rules and guidelines developed over a era of time to bring uniformity and consistency to the process of accounting and improve its utility to different users of accounting information. Separately from these, the Institute of Chartered Accountants of India, (ICAI), which is the regulatory body for consistency of accounting policies in the country, has issued Accounting Standards which are expected to be uniformly adhered to, so as to bring consistency in the accounting performances. So as to maintain consistency and uniformity in accounting records, certain principles or rules have been developed which are generally accepted by the accounting profession. These rules are called by different names such as principles, concepts, conventions, postulates, assumptions and modifying principles.