ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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DEDUCTIVE ACCOUNTING THEORY Definition
DEDUCTIVE ACCOUNTING THEORY (mathematical method) assumes that optimal accounting standards and reporting rules can be derived by deduction much in the way that Pythagoras derived the rule for measuring the hypotenuse of a triangle based upon square root of the summed squares of the other two sides (assuming one angle is a perfect 90-degree angle).
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PRE-TAX INCOME/PROFIT see PROFIT BEFORE TAXES.
EQUITY METHOD is a method of accounting for investments in associated companies.