Accounting concepts undertake to verbalize ideological building blocks. Each represents a unit that may be assembled in varying groups. The resulting organized communication can be represented neither by a list of concepts nor by a collection of definitions. A mere sequence of presentation will not do either. Instead, it is more informative to select several concepts and bring their interrelations under close examination. This is so because concepts associated in groups can illuminate the inner nature of enterprise accounting. Arranging the data from related accounts into groups, such as an earnings statement, will also present a grouping of ideas that give the accounts added meaning. Related to this, it is significant to note that ideas are more basic than words or digits. Learning to write involves more than forming letters and spelling words. A composition or discourse is more an arrangement of ideas than of words. Similarly, in accounting, an exchange-priced transaction expresses an idea made concrete and objective by decisions in the markets. These transaction ideas are distributed among a variety of accounts. Each account expresses an idea; its name, form, and content derived from specific concepts. Awareness of these concepts is a necessary factor for constructing an account category, for arranging a financial statement, and for interpreting meaning from data reported therein.
(2016), "A Covey of Concepts", A. C. Littleton’s Final Thoughts on Accounting: A Collection of Unpublished Essays (Studies in the Development of Accounting Thought, Vol. 20), Emerald Group Publishing Limited, pp. 381-385. https://doi.org/10.1108/S1479-350420160000020066Download as .RIS
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