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The Accounting Review Vol. 46 No. 1 1971

The Accounting Model from an Information Systems Perspective.

James T. Godfrey1; Thomas R. Prince2

1 Assistant Professor of Accounting and Information Systems, Northwestern University. 1 · 2 Professor of Accounting and Information Systems, Northwestern University 2

Abstract

A professional paper recently examined some of the economic considerations of a statement prepared by the American Accounting Association's Committee on Basic Accounting Theory. It represented the accounting function by an information economic model embodying a utility function of a user. The article examines this Committee's statement from a more fundamental perspective with a focus on the particular statement that accounting is an information system. Specifically, the analysis consists of four parts. First, an overview of information theory is presented. Second, a concept of formal information systems is developed. This will include a differentiation between information theory and information systems and the identification of the critical elements in formal information systems. Third, two generalized models of accounting theory are presented which culminate with a model embodying the critical elements in formal information systems. Finally, the insights gained from the latter model are used to indicate research areas in accounting theory.

DOI
10.2308/tar-4482494
Volume
46
Issue
1
Pages
75-89
Language
en
Sources
crossref openalex

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