Essay on The History of Accounting - 1013 Words

The origin of accounting primarily consists of the establishment of human society and commerce. The idea of accounting is an old practice that has been dated since the Mesopotamia era. During this era, trade between tribes around Mesopotamia required records to be kept on stone and clay tablets. This took place at least 3600BC, where in those times, the ‘scribes’ who possessed a knowledge of writing also served as bookkeepers. Overall, accounting has made significant contributions over the past five and a half thousand years. The first samples of what we called â€Å"writing† were believed to be actual records of transactions from more than 5,000 years ago. Many scholars considered that accounting systems were in use which had†¦show more content†¦Merchants and property owners used accounting not just for their businesses; They also used it for getting in touch with God, their environmental settings and family members. Francesco Datini, a famous Italian m erchant wrote â€Å"In the Name of God and Profit† in his ledger books. Merchants like Datini (and later Benjamin Franklin) kept moral account books, too, for tallying their sins and good acts the way they tallied income and expenditure. If we wanted to know how to make our country and companies more accountable, we should study the Dutch. In 1602, the foundation of modern capitalism was invented which was the first publicly traded company and official stock market in Amsterdam (the Dutch East India Company). It was their older and well-maintained culture of accountability that kept these institutions stable for a century. The double-entry accounting eventually spread to the Netherlands during the early 1500s which has made the accounting education the country’s main focus. Their managers, eventually, gained trust from The Dutch for maintaining good books and logging in regular interest payments, and paying off their state debts in the meantime. Every level of Dutch so ciety practiced double-entry accounting based on the advantages and pitfalls that were at the fore of the public’s conscious. The Dutch not only had basic financial management skills, they were also acutely aware of the idea of balanced books, auditsShow MoreRelatedThe History Of Accounting811 Words   |  4 PagesToday, Im gonna cover, its a reader question that Ive had submitted right here, but I want to talk about it in a different context than how it reads. So, Im gonna start off with saying this. Doing the right thing, or what you perceived to be the right thing about your unaffordable debt doesnt necessarily get you the results that youre thinking. How does that add up? All right, so, I want to get in to the reader question and Im gonna answer very distinctly and directly to start with. And thenRead MoreHistory of Accounting in Nigeria725 Words   |  3 PagesHistory of Accounting in Nigeria The institutionalization of Accounting started in Britain, from where Accounting was imported to Nigeria. During the preindependence period, in Nigeria, especially before the establishment of the Collages of Arts and Sciences (particularly the one in Ibadan), people who wanted to enroll into accounting profession had to be trained through article ship. This meant that, they had to be attached as apprentices to those in the profession already. When the College ofRead More History Of Accounting Essays1196 Words   |  5 Pagesbefore. The author was a Franciscan monk. The chapter on practical mathematics addressed mathematics in business. He said that the successful merchant needs three things: sufficient cash or credit, an accounting system that can tell him how he ¡Ã‚ ¯s doing, and good bookkeeper to operate it. His accounting system consisted of journals and ledgers. It rested on the invention of double-entry bookkeeping. Debits were on the left side because that ¡Ã‚ ¯s what  ¡Ã‚ °debit ¡Ã‚ ± meant,  ¡Ã‚ °the left ¡Ã‚ ±. The numbers on the rightRead MoreHistory and Development of Accounting2085 Words   |  9 PagesAccounting is defined by the American Institute of Certified Public Accountants (AICPA) as the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof. Accounting is thousands of years old; the earliest accounting records, which date back more than 7,000 years, were found in Mesopotamia (Assyrians). The people of that time relied on primitive accountingRead More History of Accounting Essay3089 Words   |  13 PagesHistory of Accounting The history of accounting I feel is important in the learning, understanding, and developing of my foundation for my accounting career. In this report you will learn about the development of accounting. You will learn about the people who influenced accounting the most throughout the years. You will learn how accounting came about and how it was used in the ancient times. You will learn about the invention of the double-entry bookkeeping processes. You will learnRead MoreEnron : Questionable Accounting History1364 Words   |  6 PagesEnron: Questionable Accounting Leads to Collapse Enron, a provider of natural gas, electricity, and communications began when two large gas pipeline companies merged together in 1985. CEO Jeffrey Skilling, CFO Andrew Fastow, and Chairman Ken Lay worked diligently throughout the 1990s to build the company to be the largest most successful of its time. Having its name in Wall Street was becoming a norm for the company as it grew beyond all hopes and expectations. The company had become unstoppableRead MoreHistory Of Accounting And Private Sector1534 Words   |  7 PagesIntroduction Since the early 1980s public sector accounting and private sector accounting have experienced significant transformation such as decentralization, deregulation and the differences between thee two sectors are highly topical and political in many countries (Blondal 2003). The key transformation is the adoption of ‘accrual basis’ of accounting rather than ‘cash basis’ accounting by increasing number of countries (Guthrie and Ryan 1998). Meanwhile, public sectors refer specifically to organizationsRead More The History and Role of Accounting in Business Essays1533 Words   |  7 PagesAccounting can be defined in a number of ways, but I chose the book definition, which is; Accounting is an information system that provides reports to stakeholders about the economic activities and condition of business. The person in charge of accounting is called the accountant. The accountant is typically required to follow a set of rules and regulations. These rules and regul ations are called the General Accepted Accounting Principles. Throughout these next few paragraphs, I will be giving youRead MoreHistory and Development of Accounting Standards Essay2637 Words   |  11 PagesAccounting has been around since the beginning of civilization.  ¡Ã‚ §Accountants participated in the development of cities, trade, and the concepts of wealth and numbers. ¡Ã‚ ¨ (Giroux) The importance of accounting cannot be overemphasized. Equally important are the standards used to guild the application of accounting practice. Without principles and standards, financial reporting would not fairly present the financial position of a company. Accounting has changed and evolved vastly over time and continuesRead MoreHistory Of Scientific Management And Its Impact On Managerial Accounting Essay1825 Words   |  8 PagesHISTORY OF SCIENTIFIC MANAGEMENT The primary goal for the managers within an organization should be to best utilize resources contributed by the shareholders of the organization to create and grow profits and revenues. In addition, the primary goal for an employee should be to earn the highest pay possible at his or her job level, while developing skills to maximize his or her efficiency. These two goals, along with other factors, are critical considerations in the long-term success of an organization