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Briefly explain the history of accounting
The relevance of accounting history in enhancing our understanding of the development of the development of the accountancy profession
Briefly explain the history of accounting
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Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development …show more content…
The recording of accounting history allows for research of a high calibre and quality to be developed. If developments and research of the past were not recorded
Another benefit of accounting history is that it assists one in better understanding current accepted practice or issues. The background knowledge that one attains allows individuals to understand its purpose and how they should act to be in accordance with these aims. Two examples of recent accountancy norms include that of extensive auditing procedures and external disclosure of financial statements. (auditing, external
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(end off of this paragraph) These factors all strengthen the motivation of individuals in the profession as they feel that they are in a role of importance and are aiding in the continuation of the accounting profession and enhancing its positive and growing reputation. A common history, binds individuals to create an elite community with a unique characteristic. Without a history or story around the profession, individuals may not have to same drive or sense of satisfaction in continuing their work to the benefit of
How the Merchants of Venice Created Modern Finance, Jane Gleeson-White explores the development of double-entry accounting from its ancient roots up to its impacts on modern day society. She shows that the effects of double-entry accounting are widespread and encompass almost every aspect of life, not just those involving accounting and finance. Gleeson-White delves into topics ranging from the economic system of capitalism to environmental degradation. She even includes a brief psychology discussion comparing corporations to psychopaths. By covering all of these topics, Gleeson-White emphasizes the importance of double-entry accounting and the role that Venetian merchants played in the perfection and widespread use of this accounting system.
Lucas Pacioli was the first to describe a system of debts and credits in accord with journals and ledgers in 1494. These basics came together to be the concoction for what is known as accounting. Since the formal establishment of accounting in 1494, the field has expanded as the demands of the ever-changing economy became greater. The industrial revolution created the first jump in the field forcing the creation of sectors within. Since this first creation of sectors, accounting as a field has been creating more specific sects to accommodate a large variety of areas. The most common and large sects created this far include public and private accounting. Although both sects carry the same basis for their work, the variation between the two lies in their demographic, demands, and decoration.
Hines, R. D. (1991). The FASB’s conceptual framework, financial accounting and the maintenance of the social world. Accounting organizations and society, 16(4), 313-331.
The reckoning provides information stating the foundation of double entry accounting around 1300’s placed in the Middle ages back to the Italian republic such a Florence. An additional key element retained for The Recking stated Dutch Republic placed in the early 1600s became the center of world trade by importing and exporting various merchandises from the Pacific and America. This process of trading was the base of the development of modern accounting. The center of world trade assisted in establishing public audits and the first major
According to Warren Buffett, accounting is the language of business. The main focus in accounting is dealing with financial records. The hours of being an accountant can take up a lot of time especially if it is a higher ranked job. An accountant can basically work anywhere at any time. An accountant is very important to the government. There are a lot of job availabilities when wanting to be an accountant. Accounting is important to society because if there were no accountants it would make life hard for people to file their taxes and accountants make sure that the taxes get to the right place.
Q1: Financial statements are an important tool to record and summarise company financial situation and it can provide lots of information to the users of the accounts. And financial statements usually include income statements, balance sheets, statements of retained earnings and cash flows. Comparability, relevance, reliability and understandability are the four main characteristics which lead to useful financial information. In general, there are two main users who are interested in accounting information, internal users and external users respectively. External users include investors, customers, suppliers, government, competitors, lenders, and community representatives while internal users include managers, employees and owners.
Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South Western College Pub.
Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows:
This essay is about demonstrating appropriate examples of how stewardship changed into accountability throughout history of accounting. According to STEWARDSHIP Definition. (n.d.), Stewardship is an obligation for taking good maintenance of resources delegated to one individuals or group of individuals. For example, boards of directors must display good stewardship towards the company for which they are a board member. The notion of stewardship can be applied to the economics, environment, health and information. Accountability is an obligation of an individual or organization to account for its actions, bear responsibility for them, and to reveal the outcomes in a transparent way. Furthermore, it also includes the obligation for money or other delegated estate. The conversion from an oral custom of stewardship to accountability is one of the key developments in accounting. This essay will cover the conversion from oral tradition of stewardship to accountability by using historic examples.
Before stating my career goals, I would like to mention my motivation in choosing accounting as my career path, the origin of which is elaborated in essay three. As a rigorous and responsible girl with strong rule consciousness, I will commit to providing more accurate and timely accounting information, in order to optimize the business management and help the public understand the operating condition better, thus defending social justice and contributing to well-being.
What does the accountant of the future need to be successful? A sturdy education that while is based on traditional accounting practices, also prepares future accountants for the plethora of changes happening in the accounting universe. Frequently, most of the institutions responsible for educating professionals fail to evolve as rapidly as the professional practice itself (Bedford et al. 4). In every way, accounting is expanding and in order for the future to have competent accountants, accounting education must expand as well. Major changes occurring in the world of accounting include the expansion of services and products, changes in competition, an increase in specialization, and an increase in and an advancement of technology. It is up to academic institutions to find proactive ways in which to prepare students for such changes. Accounting education of the future will require more breadth to cover the inevitable expansion of services and products, increased knowledge of economics, marketing, management and information systems to increase competitive advantage, a balanced course load that provides a general accounting knowledge as well as increased knowledge of a specialization, and also a greater, proactive focus on the use of continuously advancing accounting technologies (Bedford et al. 8). Also in play is the chance of change in accounting standards, the move from US GAAP to IFRS. While there are no certainties surrounding the threat of such change, students in the U.S. should acquire at least a general, basic feel for the practices used in regards to IFRS. The future health of the accounting profession depends, to a great extent, on the health of our students (Gormon and Hargadon 4). Reorganization of curriculums would surely be difficult and assumedly time-consuming, but nevertheless, completely
Auditing has existed since the beginning of human society. Auditing was used mostly for the detection of fraud and was done through extensive detailed examination from ancient times until the late nineteenth century (Lee, 1988). Fraud was a great concern during the early history of auditing, because internal controls were not used or not used effectively until the twentieth century. The late nineteenth century was a turning point in auditing history, when laws like the English Companies Act of 1862 were enacted.
Both accounting and finance deal with money and assets; however, they are categorically different concepts. This portion of the essay will discuss the dissimilarities between accounting and finance. Examples of different concepts will be given for both practices.
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.
Accounting is so important in our modern society. It serves a variety range of place in our society. It serves a variety range of place in our soceity, from school to hospital, from business firm to government agencies. It's also the main force in regulation of taxation and industrial activity. It serves a great aspects on the development of mass-production systems, any way, it's a very important term in our modern soceity.