Management engages in self-examination by studying the account data reporting the results of prior decision-actions. Actual transaction experience data will be more significant than data that are hypothetical. This is so because back of financial statements lie consummated transactions reflecting planned efforts on the part of the buyer and planned performance on the part of the seller. With this in mind, profit as motivation can be over emphasized, although in reality it is still a good indication of sound prior policies, plans, and decisions of management. Standardized accounting, however, is not without its limitations, as it cannot reflect the individuality of competitive enterprise and their management.
(2016), "Broad Patterns of Mission", A. C. Littleton’s Final Thoughts on Accounting: A Collection of Unpublished Essays (Studies in the Development of Accounting Thought, Vol. 20), Emerald Group Publishing Limited, pp. 239-248. https://doi.org/10.1108/S1479-350420160000020048Download as .RIS
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