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The Corporate Finance Institute Accounting
Financial Accounting Theory
Now that we’ve covered some general
bookkeeping and accounting conventions, let’s
take a closer look at financial accounting, its
importance, and specifically assets, liabilities,
and equity accounts. Financial accounting
theory focuses on the “why” of accounting –
the reasons why transactions are reported in
certain ways.
The majority of introductory accounting
courses, cover the “what” and “how” of
accounting. These include looking at hundreds
of journal entries, gaining familiarity with all
the common accounts that companies use,
and learning how financial statements are put
together and how to calculate the proper debit
and credit amounts
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