Accounting principles and concepts

This book is a philosophical analysis of accounting. The causes and effects in accountancy have been studied by the author – general principles and concepts of accounting as causes and the accounting techniques and procedures as effects. A new accounting principle – the informative principle – is presented; and for the first time in accounting literature, a «dynamic» relation between the income statement and the balance sheet has been illustrated. This book not only answers the question of how in accounting, but also answers the question of why . Throughout the book, a great number of new ideas are introduced by the author. While studying accounting practice to probe the role and impact of accounting principles, a number of present day accounting practices are criticized by the author. For example, she does not regard «income tax» as an expense; she considers «bad debt expense» as a contra-sale account; and she believes that the nature and structure of the balance sheet should be studied under a combined claim-contribution approach.