The bottom line is that accounting theory is based on a set of generally accepted accounting practices rather than principles or theory. Even the august Journal of Accounting Research has published a witty set of sayings from The Quotations of Chairman Mao Tse-Tung as accounting theory. In search of theories to permit the development and testing of hypotheses, accounting researchers have borrowed from other disciplines–economic theory, financial theory, information theory, and agency theory, to name but a few. Ross Watts and Jerrold Zimmerman have even combined the concepts of these and other
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