Accounting theory is a material field in Accounting. Historically accounting predates, monetary economy. This.Was precisely in the, era of barter economy (i.e. Exchange of goods for goods) when transactions were not only.Pre-determined by measurement but also by exchange values. Accounting theory is a material field in Accounting, Historically,. Accounting predates monetary economy. The precept in which goods were exchanged at.Arms-length through concerted efforts, of gathering determining and measuring values are both pre and post-ante, accounting. The Trade by barter period was characterized by measurement inequality cumbersome in,,Terms of production variety and coupled with the problem of coincidence of wants were all-inherent, in barter.Economy However the development, of accounting theory was to ameliorate the inherent problems encountered.In, barter economy unlike monetary economy. It is pertinent to understand the meaning scope and, application.Of a theory in Humanities and Management Sciences in order to appreciate the work of accounting theory.
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