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If you are clear with the concepts of accounting theory, then you can land in a lucrative career. When you learn accounting theory and current issues, then the logic behind the accounting practices are clear to you. After you are done with the learning of accounting theories, you can well understand that practical accountancy is not at all cumbersome. Moreover, an accountant can perform his duties effortlessly after learning accounting theories. An accountant who has sound knowledge of accounting theories can quickly analyze the problems in his job description. Apart from this, he tries troubleshooting the issues.
Moreover, there is more than one procedure in practical accounting. An individual process cannot be applied to all the cases. Under such a situation, it is the duty of the accountant to choose the right procedure of accounting that can be applied in a specific case.
It would be easy for an accountant to figure out the errors within the accounting system of a business. Apart from this, the accountants possess the right to guide the management of the company regarding the errors in the accounts. An accountant who possesses the concepts of accounting theory can quickly assist the administration in a proper manner by giving accounting data at the right time.
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Relevance: Relevance expresses how useful the data is for the economic decision-making procedure. Data on accounting proves to be relevant only if it can give valuable data based on past events and assist in anticipating forthcoming events.
Timeliness: Timeliness means how easily data is available to the end-users of accounting information.
Apart from the characteristics mentioned above, there is representational faithfulness, verifiability, understandability, and comparability.
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