History of Accounting Essay -- Accounting Employment Bookkeeping Essay

History of explanationThe history of chronicle system I feel is important in the molding, grounds, and develop of my foundation for my account career. In this report you exit learn some the development of accounting. You will learn about the people who influenced accounting the well-nigh 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 learn how things were done before the birth of the double-entry bookkeeping process. You will learn about Luca Pacioli and the Summa. You will also learn about modern accounting and ACAUS.In attempting to explain why double entry bookkeeping create in fourteenth century Italy instead of ancient Greece or Rome, accounting scholar A.C. Littleton describes seven key ingredients which led to its creation. Those key ingredients consisting of private property, cap, commerce, credit, writing, specie and arithmetic. Most of these did non exist in ancient times. This alone would not lead someone to create a complete and involved accounting system. Writing, for example, is as old as civilization itself, but arithmetic - the organized manipulation of number symbols - was really not a tool possess by the ancients. Fairly, the persistent use of roman numerals for financial proceedings farseeing after the introduction of Arabic numeration appears to have delayed the front creation of double-entry systems. However, the problems encountered by the ancients with record keeping, control and verification of financial transactions was not entirely different than our own today. Governments had strong incentives to keep sleepless records of receipts and disbursements -for the most part as concerns taxes. In any family where individuals accumulated wealth, there was a desire by the rich to execute audits on the honesty and skill of slaves and employees entrusted with asset manage ment. But the lack of the above-listed pre-existent to double entry bookkeeping made the job of an ancient restrainer extraordinarily tall(prenominal). In societies where nearly all were illiterate, writing materials costly, numeration difficult and money systems inconsistent, a transaction had to be extremely important to free keeping an accounting record.Accounting in ancient Mesopotamia, Circa 350... ...also shifted the focus to revenues and expenses . At the turn of the century, there were at least four types of funds statements in use - those that summarized changes in cash, in current assets, in working slap-up and overall financial activities. Accountant H.A. Finney led the movement for use of a funds statement, which focused on liquidity by tracking the sources of changes in working capital. He used a worksheet approach to highlight purposeful fit sheet changes by aggregating most of the fluctuations, which affect working capital and offered a standardized method f or calculating them. In the 1940s, the accounting professing increasingly used the funds statement to measure the actual cling of monies, rather than simply the sum of working capital changes between balance sheet dates. The funds statement increasingly became a staple for the financial statement, and in 1971 the AICPA began requiring its inclusion in stockholders annual reports.So in culmination I hope by reading this you know have a better understanding accounting. Also I want you to have and understanding of how it was originated and the major contributors of the systems we use today in accounting.