...“The History of Accounting” Accounting is one of the oldest professions and the growth and spread of the profession can be paralleled with the growth and spread of Western Civilizations. Through archaeological discoveries the use of accounting can be dated back almost 7,000 years ago. Many of today’s accounting practices came from the Italian Renaissance. The sophistication of double entry accounting was accompanied by an overwhelming demand for professional accountants to follow the guidelines. The expanding profession of accounting really took off with the coming of the Industrial Revolution in America. The use of accounting practice has been around for ages and the growth of the use and practices can be seen to reflect the growth of trade, cities, and the concepts of wealth and numbers. Ancient Mesopotamian artifacts that date back over 7,000 years ago, give proof that primitive accounting techniques were used to record the growth of crops and herds on clay tablets. The Roman Empire kept records of cash, commodities, and transactions on papyrus rather than clay because it allowed more detail to be kept. “The Great Roll of the Exchequer” which is also called the “Pipe Roll” was kept during the Medieval Times and provided an annual description of rents, fines and taxes due to the King of England. Although these practices are not reflected in modern day accounting, it definitely contributed to the need for detailed records for various transactions. Widely acknowledged to be the...
Words: 538 - Pages: 3
...Today’s modern accounting systems implement basic accounting needs while at the same time offering increased correctness in tracking trends, enabling partnership, and giving quick access to data. Computers run everything from home to work. Computerized solutions offer faster transaction processing and better classification of data while at the same time growing the range of input data that give a clearer and more complete picture of a company’s financial bottom line. Modern accounting systems help company management choose wisely in the use of better resources to increase profits at the same time as identifying cost saving and less spending. Accounting is the foundation of any business big or small. Yesterday many businesses did their accounting by hand. This was a long and problematic job done by those who were trained to do only accounting. Some small businesses still do it today, and this serves them fine. Larger companies have switched to computerized accounting systems today which run faster and are more accurate than manually. They both perform essentially the same thing, and are under the very same principles and concepts with the only differences being in the mechanics (Shanker, 2011). There are many factors facing manual accounting compared to computerized accounting today: speed, cost, and back up. Speed is important in accounting today due to the large companies and their investors. Using today’s computerized accounting systems, processing data, and reports...
Words: 1266 - Pages: 6
...Effects of Technology on Accounting Information Systems James King University of Phoenix: ACC/340 Accounting Information Systems I Instructor: Ray Dahmer June 27, 2011 Effects of Technology on Accounting Information Systems The information age and the resulting technological advances have made an impact on every functional area of the accounting industry including auditing, taxation, financial, and managerial accounting (Bagranoff, Simkin, & Norman, 2008). Information systems consist of data input and processing devices, applications, personnel, and procedures, all of which produce information that management uses to make crucial business decisions (Bagranoff, Simkin, & Norman, 2008). This paper contains a discussion of modern accounting information systems and the influence of those systems in the changing landscape of the accounting profession. New Technology and Its Effect on Business The introduction of modern information technology into the accounting profession has produced advances in the industry and in the design of accounting information systems. All but gone are the days of spiral bound ledgers and adding machines. Accounting applications running on computer systems with two-gigahertz processors and gigabytes worth of memory perform accounting tasks in modern organizations. The information generated by modern accounting information systems from the data gathered by the input terminals within the system, informs managers about the situation...
Words: 981 - Pages: 4
...Tax Law and Accounting Craig ACC 483 June 21, 2010 Jeff Hough Modern taxation comes from a long history of changes in the United States beginning with the Revenue Act of 1861 that was designed to assist with funding the Civil War. This tax was repealed 10 years later. “In 1894 Congress enacted a flat rate federal income tax, which was ruled unconstitutional the following year by the U.S. Supreme Court because it was a direct tax not apportioned according to the population of each state” (Terrell, 2009, History of Tax Law, para. 2). In 1913, the Sixteenth Amendment enacted modern day federal income tax in the United States. Before 1913, the federal government relied on customs duties and excise taxes as its source of income. As America developed the U.S. government needed additional income to sustain its operations. The Sixteenth Amendment consisted of just one sentence: “The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration” (Pope, Anderson, & Kramer, 2010, p. 1-3). The implementation of income tax remains one of the most remarkable institutions created in this era. Modern Income Tax Statutes The primary objective of modern tax statutes is to generate revenue to sustain governmental operations. The largest source of federal revenues is individual income taxes. Other sources come from corporate income taxes and Social...
Words: 1146 - Pages: 5
...The Importance of Islamic Accounting in Modern Era by: Chusnul Asfadillah Student of Airlangga University, Surabaya, Indonesia +62899 372 1772 Ines Nur Latifah Student of Airlangga University, Surabaya, Indonesia +62878 8432 3738 DR. Raditya Sukmana Lecturer of Airlangga University, Surabaya, Indonesia + 62 878 5421 6776 ABSTRACT Purpose – This paper aims to determine the importance of the Islamic Accounting in modern era. In particular, the paper analyzes the values of the Islamic principles in the accounting process that prevent the unexpected activity such as fraud, dishonest etc to appear in reality. Arthur Anderson case was a result of the fraudulent activities that lead to its termination. Certainly this kind of case is expecting not to be happened in the future. Design/methodology/approach – The paper adopts the descriptive analysis and elaboration of the important element of the Islamic principles used in the accounting process. Furthermore, this paper attempt to make clear distinction between values underlying the Islamic accounting and that of the conventional accounting. Findings – the comparison of those two systems leads to the conclusion that the value in Islam such as honest, fair, truth (which is important in the Islamic accounting process) has more meaning than the similar value of in the conventional accounting. Hold firmly the Islamic value obviously leads to the decrease fraudulent practices and other unexpected activities. Moreover, it increases the social...
Words: 4072 - Pages: 17
...Technology in modern communication [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] z [Pick the date] Technology in modern Communication SUBMITTED TO: Name | Ms. Tahmina Akhter | Designation | Assistant Professor | Course name | Business English and communication | Course code | F-101 | submitted by: GROUP NO: 12 NAMES | ID | mahfuzur rahman | 19-084 | MAEDUL ISLAM | 19-054 | SAMIUN NAHAR NITU | 19-174 | AFROZA LUBNA | 19-138 | RIPON HALDER TANMOY | 19-069 | | | | SUBMISSION DATE: 12/06/2013 Executive summary x Chapter -1 | 1.1 Background of report 7 1.2 Objective of the report 7 1.3 Scope of study 7 1.4 Methodology used 8 1.5 Preview of presentation 8 | Chapter -2 | 2.1 Technological evolution in modern communication 8 2.2 Electronic media in written communication 9 2.2.1 E-mail 9 2.2.2 Word processing 9 2.2.3 Electronic bulletin board 10 2.2.4 On line database 10 2.2.5 Internet 10 2.2.5.1 On line internet...
Words: 6229 - Pages: 25
...Accounting is the most basic framework of business. People use accounting in their daily lives when they study financial statements to make investment decisions, assess interest rather to pay off their house mortgage and calculate rates for car payments. God himself recognize accounting, for he said in his Holy Bible that everyone would be accountable before him when this world comes to an end.(Matthew 12:36) The practice of accounting can be traced back to ancient times, with "accounting books" of various forms discovered as early as 3500 B. C. From the time of 3500 B. C., accounting has progressed slowly through the development of the modern double-entry system published by Luca Paciolo in the fifteenth century until the advent of the computer. In 1581 the first college of accountants was organized with power to regulate entry into the field. Along with the development of modern accounting, a stereotypical image of the accountant was developed, because of its task being routine and purity mathematical in function. The accountant is view as a dull person that is chain to his desk all day. A survey of college students proved that accounting is treated with mental formulaic concepts, thus it has a stereotype image. Accounting may be defined as an information system that provides reports to various individuals or groups about economic activities of an organization or other entity. Accounting is information sciences used to collect, classify, and manipulate financial data for...
Words: 477 - Pages: 2
... you as the Owner of Fu Foods, your equity The Basic formula for determining owner’s equity To determine your owner’s equity, use the accounting formula of: Owner’s equity = Assets – liabilities I suggest to retrieve the balance sheet which provides an accurate picture of a corporation, sole proprietorship or a partnership assets, liabilities, and stockholders, sole owner or a partnership equity. Your assets or things you have of economic value are current assets, long-term investments, property plant and Equipment (PP&E) and intangible assets. Your liabilities or debts to external parties are your current liabilities, and your long-term liabilities. Your equity is determined by subtracting the liabilities from the assets, the answer that you get is your equity. Accounting systems role in the modern enterprises Since your business is in a current growing state, you will to re-evaluate your information systems. The modern accounting systems is very important to your business, because it tells you where are the money goes and money is the name of the game in this capitalist society that is America. What are your profits and what are your losses for a specific or general period of time. Modern accounting systems allow you to track all your financial and economic activities year round, or just your fiscal year periods. Accounting systems allows businesses to make internal report for managers concerning expenses, payroll, receivables, and overdue payments. It also allows...
Words: 857 - Pages: 4
...logistics management accordingly. The changes in global maritime logistics internal requirements and external environment certainly impel the adjustments in management philosophy, business strategy, institutional framework, human resource, maritime logistics culture and other aspects in maritime logistics management. Therefore, the study on maritime logistics management has both theoretical significance and practical significance. Cost reduction strategies have been frequently applied in the global maritime logistics. However, it has both advantages and disadvantages in global business. Therefore, it is very necessary to make the most use of cost reduction strategies according to the unique character of maritime logistics. With the guidance of modern management theory and management innovation theory, this paper discusses the cost reduction strategies and green strategies in global maritime logistics, and presents the idea that management is an objective requirement for maritime logistics development in the new situation. The paper summarizes the achievements and deficiencies in maritime logistics innovation of cost reduction strategies in the implementation of green strategies, mainly discusses the bottleneck factors that restrict maritime logistics management, and proposes that the main problems in maritime logistics management are vague management concept, unscientific strategy formulation, and he maladjustment of maritime logistics culture, etc. On the basis of learning and introducing...
Words: 1510 - Pages: 7
...page. Save the file as (e.g. 1123456BS1234). IMPORTANT: Save this file as a PDF, other formats WILL NOT BE ACCEPTED. Cardiff Business School COURSEWORK COVER SHEET 2014/2015 Section 1 (to be completed by the student) Student Name: Oliver Conroy Student Number: C1218229 Module Code: BS3517 Module Title: Management Accounting & Control Coursework Title: Budgeting Essay Submission date: (before 4pm on…) 17.03.2015 Date document last saved/printed: Section 2 ( To be completed by the Lecturer) COMMENTS: --- 09.03.2015 (Updated automatically) Lecturer: Nina Sharma MARK AWARDED: Number of words: 1976 Created by: sbsjj15 Document last opened: 09/03/2015 14:22:03 Version 2.3 Oliver Conroy C1218229 Management Accounting & Control BS3517 i.) INTRODUCTION The apparent flaws and inaccuracies in the traditional budgeting process have caused many scholars to openly question the need and validity of this stalwart of modern day management accounting. Hope and Fraser (2003) spearheaded the ‘Beyond Budgeting’ approach, challenging the conventional format of budgets and arguing that they should be abolished, removing the rigid shackles imposed on businesses of ...
Words: 2744 - Pages: 11
................................. 2 1.1 Luca Pacioli: Father Of Modern Accounting ...................................................................................... 2 1.2 19th Century – The Beginnings of Modern Accounting in Europe and America ............................... 3 1.3 20th Century – The Development of Modern Accounting Standards................................................. 4 1.4 21st Century – Accounting Regulation in Modern Commerce ........................................................... 4 2. DEVELOPMENT OF ACCOUNTING .................................................................................. 4 3. EVOLUTION OF ACCOUNTING ......................................................................................... 5 4. THE CONSEQUENCE OF DOUBLE ENTRY ..................................................................... 6 5. RECENT GROWTHS AND DEVELOPMENTS IN ACCOUNTING ............................... 7 6. LOOKING TO THE FUTURE ............................................................................................... 8 REFERENCES .............................................................................................................................. 9 1. INTRODUCTION The main objective of this study is to critically review the Origin, Growth and Development of accounting theories and their impacts on financial reporting. Other objectives are to explore accounting theory in resolving areas of diversities among users of financial...
Words: 4587 - Pages: 19
...To: Dr. Moffitt From: Daniel Arnold Date: 3/5/15 Re: Individual Project – “The History of Double-Entry Bookkeeping” Accounting has played an important role in the evolution of civilization, even before the modern concept of ‘accounting’, as understood by modern man, existed. Man’s drive to measure and record his surroundings required more and more complex means in order to do so (Gleeson-White 11). This drive to more complex recording techniques led to writing, a numeric system, the spread of arithmetic, and created a standard system in an effort to ease international trade. The scope of this paper will focus on the realization of double-entry bookkeeping, a major branch of accounting. Double-entry bookkeeping (DEB) is defined as an accounting system that recognizes both sides of a transaction using equal amounts of debits and credits. Unlike a single-entry system, it tells the whole story of a transaction (Gleeson-White 11). In order to understand how DEB came into existence, one must reflect on history. As stated earlier, man’s natural drive to measure and record events around him led to arguably one of the biggest single leaps in human civilization - writing. Professor Denise Schmandt-Besserat discovered this link between writing and accounting in 1969. Schmandt-Besserat asserts this about her discovery: “the origin of writing is no longer a mystery…contrary to all expectations [no one would have] guessed that writing derived from counting” (Gleeson-White...
Words: 2389 - Pages: 10
...run smoothly it is fundamental that the accounts are correct, well kept and provide the essential financial information in order for a business to see what sort of financial position it is in and for directors or people who run the business to make important financial decisions to ensure the survival of a business. The function of accounting allows a company to keep records of all its financial history and allows the organisation make decisions based on the information. A well known definition of accounting is ‘The process of indentifying, measuring, and communicating economics information to permit informed judgements and decisions by users of the information’ (Wood, 2008, p.332). It is all based around the provision of financial information about a business entity to the financial decision makers of the business. It is also a legal requirement for businesses especially private limited and public limited companies to provide precise figures in their books and accounts in order to prove they are not committing fraud. Therefore the role of the accountant is highly significant and businesses must ensure they employ adept accountants to keep the day-to-day running of a business’s finances, accounts and books in good upkeep regardless of how good or bad the state of affairs in the organisation are. It is also important to remember that accountants do more than just provide the correct financial information but they are also an important tool in advising directors and members of the...
Words: 1588 - Pages: 7
...There are fraudulent accounting procedures taking place in many businesses all across the world, and many companies have been going a number of years covering up the real financial value of their company. Forensic accountants are becoming much needed as accounting frauds, financial scams, and various economic scandals are beginning to increase globally. This type of accountant does more than the typical accountant of a business or corporation, because their objective is to investigate fraudulent activities being used in the accounting departments of these companies. The amount of fraud being used by companies globally is most likely going to increase in the future as technology is evolving and scammers are getting more creative. This will also lead to a gradual decrease in the investment rates in companies, because the risks of investing in a corrupt business world will outweigh the benefits. Potential investors in companies using creative accounting techniques will increasingly become more at risk if there is no exponential growth in the field of investigative accounting. Accounting scams are becoming a part of the normal occurrence of day to day activities as this type of fraudulent activity is frequently gaining exposure in the daily news worldwide. As owners and managers conceal the financial state of their companies by manipulating their financial statements, the reliability and trust of these statements by investors are decreasing. Illegal accounting procedures are not being...
Words: 1908 - Pages: 8
...Kaitlin Williams University of Phoenix ACC/280-Principles of Accounting Carol Demuth Jun 22, 2011 Financial Statement Paper Businesses today need to run quickly, efficiently, and have smaller margin for error than ever before. To keep up with the fast paced world around them, companies must assure things run as smoothly as possible to have a chance at competing with their competitors. One of the biggest details that have to be correct is the company’s accounting. Getting the numbers right isn’t just important, it’s the reason that a business can make money. Without proper accounting, it would not be possible to know how much money is being made or lost, what can be done to change these things for the better, or even where the money ends up. It is a part of everyday business, and will be as long as people continue to do business. Accounting is utilized to record all of the receiving, sending, and all other transfers of money for a particular company. Think of it like the balancing of a checkbook for an entire business as opposed to a personal bank account. If transactions are not kept up with, money can easily fall through the cracks and companies could lose a substantial amount of it simply by not knowing what the numbers should look like. It would be impossible to know if someone was stealing money from the company, or if a company that business was done with had actually paid its bill correctly. Accounting is more than a necessity, it is impossible to run a business...
Words: 914 - Pages: 4
