Title: Towards a Theory of Business Accounting**By R. J. Chambers. This is a simplified and modified version of a paper, Towards a General Theory of Accounting, first written in 1961. The basic ideas are unchanged, but the conclusions differ in some important respects. The necessity for these changes became apparent when writing Accounting, Evaluation and Economic Behaviour, completed in December 1964, and on subsequent reflection. The present form represents the author's view as at the end of 1968.
Abstract: This chapter describes the theory of business accounting. Accounting deals with quantities of money, the money prices of nonmonetary goods, and the monetary amounts of rights and claims. The particular and aggregated statements it yields contain information necessary in judging the consequences of past events and in forming plans and expectations about future courses of action. Any such set of statements relates to a specific entity, among the characteristics of which is the power or right to enter into contracts and exchanges with other entities in the community at large. The financial position of an entity is the financial relationship in which it stands to the rest of the community at a point of time. A statement of financial position will consist of a statement of assets, including nonmonetary assets at resale prices, and of the equities of creditors and of the residual interest in those assets. The aggregates of the monetary equivalents of assets, and equities will be equal.
Publication Year: 1970
Publication Date: 1970-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot