The Present State of Accounting History.

Abstract The expression "accounting theory" which is what the title of this article might be interpreted to cover would be far too ambitious a programme on this occasion. It can be used in at least two senses which it is desirable to distinguish. The first interprets "accounting" as a gerund, that is, the words "theory of accounting" come to mean a statement or set of statements about the activity that is known as accounting, or, in other words, propositions about the accounting that is carried out by people who are called accountants. The second interpretation possible is that of regarding the word "accounting" as a substantive or noun, meaning an area of study. A theory of accounting in this sense becomes a set of statements about the things that accountants or others interested in the field observe and think about, as well as what accountants do. This field has been explored only in more recent times than the other and has, to a great extent, developed out of it. The distinction between these two interpretations is perhaps rather shadowy and subtle, and they are not altogether divorced from each other.