HISTORY OF ACCOUNTING AND BUSINESS The history of accounting is as old as civilization‚ among the most important professions in economic and cultural development. Accountants invented writing‚ developed money and banking‚ innovated the double entry bookkeeping system that fueled the Italian Renaissance‚ were needed by Industrial Revolution inventors and entrepreneurs for survival‚ helped develop the capital markets necessary for big business so essential for capitalism‚ turned into a profession that brought
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background‚ our knowledge is incomplete and the judgment of current phenomena is precarious and lacks maturity” [1]. The arise and development of accountancy were determined by the practical needs of economic life At the beginning‚ “rudimentary bookkeeping” or “statistical accounting” manifested as a record of various goods‚ out of practical needs (cuts on animal bones‚ using pebbles‚ etc.)‚ its development being closely linked to the development of human society and especially to the great discoveries
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Serial No: 72367B Test No: 1 Edition: 1 Student Name: Cosme‚ Felicia Student Number: 10011439164 Question 3: (a) T-account: An informal term for a set of financial records that use double-entry bookkeeping. The term T-account describes the appearance of the bookkeeping entries. (b) Accounting cycle: The name given to the collective process of recording and processing the accounting events of a
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deposited in a couple of day the person who wrote it might spend the money thinking they had more than they really did. The less time you cash deposits remain in the office the less time someone dishonest would to steel money as well. Single entry bookkeeping is a more simple version of double entry. A single entry system is similar to a checkbook register. It is characterized by the fact that there is only a single line entered in the journal for every transaction. Each transaction is recorded in of
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they are making a profit or not through the use of either Manual accounting System or the Computerized System. Historically‚ accounting was a manual process where in the well known father of Accounting‚ Luca Pacioli‚ developed the double entry bookkeeping system in 1494 using debits and credits to manage company. The manual process uses paper ledgers and journals where accountants records financial information. Information’s where carefully entered into physical books requiring accountants to
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Accounting is an ancient human activity. From the time when men and women first engaged in trade‚ whether for barter or money‚ it must have been necessary to keep some kind of record of incomings and out-goings‚ to which the origins of the double entry bookkeeping system can be traced. Accounting is as old as money itself. The present form of accounting has passed through various stages of evolution. It has developed to meet the emerging needs and requirements of modern society. Like any other discipline
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ORIGIN OF BOOK KEEPING The practice of record keeping existed ages before the formal recording of history. Barbarians began to keep records by scratching them on rocks. From there crude forms of picture writing‚ the process of rudimentary bookkeeping began. The Italians were the leading bookkeepers and record makers for centuries. As early as 813 A.D.‚ Bookkeepers were recognised in Italy and from these men came many of
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THE ROLE OF ACCOUNTING IN BUSINESS Accounting is a part of your daily life‚ it is not a branch of Mathematics‚ however‚ you need to be able to add‚ subtract‚ multiply and divide‚ otherwise‚ you would not know how much money you had with you‚ how much you would have spent or whether the change you received was correct. Accounting is a system used by businesses to track financial information. Businesses then analyze and use the information to make business decisions. Accounting uses a double-entry
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previously employed in direct computer sales for a national firm specializing in business computers. Thompson knew the importance of adequate records. One of her first decisions‚ therefore‚ was to hire Jarrard‚ a local accountant‚ to set up her bookkeeping system. Jarrard wrote up the store’s preopening financial transactions in journal form to serve as an example (Exhibit 1). Thompson agreed to write up the remainder of the store’s September financial transactions for Jarrard’s later review.
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used in the transactions. Both of these steps are critical to successful recordkeeping. Besides that‚ accounting cycle is a methodical set of rules to ensure the accuracy and conformity of financial statements. Accounting cycle also known as ‘bookkeeping cycle’ which means practice of recording the transactions of a business and it does helps to reduce mistakes. In another words‚ accounting cycle refers to eight steps (which shown in a diagram below)‚ repeated in each reporting period‚ verify transactions
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