This essay will discuss the perception that financial accounting appears to be transforming. It demonstrates why financial accounting theories arise and the difference between descriptive and prescriptive research methods; why research can move from one method to another and how accounting theories influence the contribution of some famous researchers such as Paton, Littleton and Chambers. Accounting is a human activity; Accounting theories should therefore take into account the behavior of individuals with regard to accounting information. (Deegan, 2009, p.4) Hendriksen (1977, p.1) argues that accounting theory should be logical in the form of general principles. It provides a general framework of reference by which accounting practices can be evaluated and guides the development of new practices and procedures. According to paragraph 12 of SAC 1 (CPA, 2009), the user needs accounting information to make resource allocation decisions. In order to provide relevant and high-quality information to meet users' needs, researchers attempt to build accounting theory to improve accounting practices and the quality of accounting information. (Gaffikin, 2005, p.3) Therefore, financial accounting theories appear. The research and development of accounting theories fundamentally uses the “inductive” or “deductive” method. Inductive methods such as descriptive theories suggest that the theory draws a conclusion from a set of facts or evidence. (Deegan, 2009, p.8) This is because accounting theories should take into account people's behavior; observation and conclusion from a set of facts can be widely adopted. The research is based on careful observation of accounting practices of consistent behavior of accountants (H...... middle of article ......d to study: An introduction to corporate accounting standards", Journal of Accountancy, Vol. 71, Iss. 000001; Puchler, JA (1974), “An Economic Analysis of Accounting Power”, pp. 45-73. “Accounting Basics”, Accounting Review, Vol. 16 Issue 4, p341, 9p. 4th Edition”, Thomson, Australia.Skolnick, G. (1969), “A History of Accounting and Accountants”, Chartered Accountant of New York, Vol. 39, Iss 000012. Sweeney B. and O'Reilly J . (2004), “Law in Commerce 2nd Edition”, Butterworths, Australia Watts, RL & Zimmerman, JL (1979), “The demand and supply of accounting theories: the market for excuses”, Accounting Review, Vol. LIV, n° 2, pp.. 273-305.