was developed to resolve
problems as they arose

how theory is accepted
depending on how
it explains

Debit portrays a classification and credit portrays another classification

Is aimed at maintaining the fundamental
accounting that summaries the
classification position

Corporations/Preparers
Of Financial Statements

Regulators/Legislative bodies and enforcement authorities

Describe the cause and effect relationship
between increment and decrement

The value of increment offset by an equal value of decrement

relate the past to what practiced and to what ought to be practiced

clues and explanation of double-entry bookkeeping and the development of modern accounting

may not reveal cause of an event as a certainty but can indicate probable factors of affecting the event