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I migrated https://money.stackexchange.com/questions/60998/accounting-theory over from Economics.SE and see that is has been closed as off-topic.

Sorry for jamming up your site with unwanted questions, but it would be helpful to me (for the purpose of dealing with future potential migration cases) to understand why this question should be considered off-topic.

Your help-center says that on-topic questions include those about

Sole Proprietorships

  • Bookkeeping

which seems to describe this question fairly well (at least to my limited understanding of small business finance).

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Thanks for asking. For a small-business or self-employment accounting question to survive here as on-topic, such a question must typically be both:

  • practical (i.e. not academic homework), and
  • relate to the income of an owner individual.

Accounting questions may also be on topic if they relate to how an individual investor might interpret the statements of a public company for investment evaluation purposes. e.g. understanding profit/loss, balance sheet assets, etc.

Accounting questions about personal money management practices are on topic. e.g. balancing your checkbook, calculating your net worth, using personal money management software, etc.

Our restrictions w.r.t. accounting are in place to prevent a flood of: financial/managerial accounting homework questions, questions about how to use or develop accounting software strictly for a business, etc. None of those kinds of questions are sufficiently related to our primary topic of personal finance. FWIW, the "& Money" part of our name is not intended to broadly expand the topics beyond personal finance.

Please refer also these other meta posts, where this has been addressed:

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