This paper presents a series of new results on the asymptotic stability of discrete-time fractional difference (FD) state space systems and their finite-memory approximations called finite FD (FFD) and normalized FFD (NFFD) systems. In Part I, new, general, necessary and sufficient stability conditions are introduced in a unified form for FD/FFD/NFFD-based systems. In Part II, an original, simple, analytical stability criterion is offered for FD-based systems, and the result is used to develop simple, efficient, numerical procedures for testing the asymptotic stability for FFD-based and, in particular, NFFD-based systems. Consequently, the so-called f-poles and f-zeros are introduced for FD-based system and their closed-loop stability implications are discussed