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    Introduction To Accounting

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    Josh Chua
    Accounting is the process of identifying, recording, and communicating the financial information of a business entity. It has evolved from the early use of clay tablets in Mesopotamia to the modern double-entry bookkeeping system developed by Luca Pacioli in 14th century Italy. Major developments include the growth of corporations during the Industrial Revolution and standardization of accounting practices in the 19th-20th centuries. Today, accounting seeks to establish global standards to facilitate transparency and comparability across international borders in our increasingly globalized business environment.

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    Introduction To Accounting

    Uploaded by

    Josh Chua
    41 views20 pages
    Accounting is the process of identifying, recording, and communicating the financial information of a business entity. It has evolved from the early use of clay tablets in Mesopotamia to the modern double-entry bookkeeping system developed by Luca Pacioli in 14th century Italy. Major developments include the growth of corporations during the Industrial Revolution and standardization of accounting practices in the 19th-20th centuries. Today, accounting seeks to establish global standards to facilitate transparency and comparability across international borders in our increasingly globalized business environment.

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    Introduction to Accounting

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    Accounting is the process of identifying, recording, and communicating the financial information of a business entity. It has evolved from the early use of clay tablets in Mesopotamia to the modern double-entry bookkeeping system developed by Luca Pacioli in 14th century Italy. Major developments include the growth of corporations during the Industrial Revolution and standardization of accounting practices in the 19th-20th centuries. Today, accounting seeks to establish global standards to facilitate transparency and comparability across international borders in our increasingly globalized business environment.

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    © All Rights Reserved
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    41 views20 pages

    Introduction To Accounting

    Uploaded by

    Josh Chua
    Accounting is the process of identifying, recording, and communicating the financial information of a business entity. It has evolved from the early use of clay tablets in Mesopotamia to the modern double-entry bookkeeping system developed by Luca Pacioli in 14th century Italy. Major developments include the growth of corporations during the Industrial Revolution and standardization of accounting practices in the 19th-20th centuries. Today, accounting seeks to establish global standards to facilitate transparency and comparability across international borders in our increasingly globalized business environment.

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    of 20

    FUNDAMENTALS OF

    ACCOUNTANCY,
    BUSINESS AND
    MANAGEMENT 1
    DAINA JANE C. GAMBET
    Subject Teacher
    Week 1 Lesson:
    INTRODUCTION TO ACCOUNTING
    The Definition, Nature and History of
    Accounting
    OBJECTIVE:
    1. Define Accounting
    2. Describe the nature of accounting
    3. Narrate the history/origin of
    accounting
    Review from the lesson online.
    ACCOUNTING
    Itis a systematic process of identifying,
    recording, measuring, classifying,
    verifying, summarizing, interpreting and
    communicating financial information. It
    reveals profit or loss for a given period,
    and the value and nature of a firm's
    assets, liabilities and owners' equity.
    ACCOUNTING-
    American Institute of Certified Public Accountants (AICPA)

    An art of recording, classifying and


    summarizing in a significant
    manner and in terms of money
    transaction and events which are
    in part of at least of financial
    character, and interpreting the
    result thereof.”
    In a practical sense, the main
    objective of financial accounting
    is to accurately prepare an
    organization's financial accounts
    for a specific period, otherwise
    known as
    financial statements
    ‘LANGUAGE OF BUSINESS’’
    Accounting is commonly called ?
    wherein it delivers financial
    information to different users through
    financial statements.
    WHAT DO YOU THINK WILL BE THE
    PURPOSE OF ACCOUNTING?
    Example:
     You wanted to start up a business.
    You invested P100,000 (personal
    money). After one month it is normal
    that you wanted to know how much
    the business made, and if the money
    you invested is still there.
    Accounting provides answers to
    the following questions:
    -How much income does the
    company make?
    -How much does the company
    owe to the creditors?
    -Is this a good investment?
    Now.. Please imagine a
    business without accounting.
    Please share your thoughts…

    Accounting information gives business


    owners the chance to analyze the
    overall efficiency and effectiveness of
    their business operations.
    Nature of Accounting
     1. Accounting is a service activity.
     2. Accounting is a process.
     3. Accounting is both an art and a discipline.
     4. Accounting is both an art and a discipline.
     5.
    Accounting deals with financial information
    and transactions.
     6. Accounting is an information system.
    History of Accounting
    The Cradle of Civilization
    - “clay tablet” of Mesopotamia
    which dealt with commercial
    transactions at the time such as
    listing of accounts receivable and
    accounts payable.
    14th Century - Double-Entry
    Bookkeeping
    (‘The Father of Accounting’) in 14th century
    Italy.
    Luca Pacioli
    Luca Pacioli wrote Summa de Arithmetica,
    the first book published that contained a
    detailed chapter on double-entry
    bookkeeping.
    French Revolution (1700s)
    The thorough study of accounting and
    development of accounting theory
    began during this period. Social
    upheavals affecting government,
    finances, laws, customs and business
    had greatly influenced the
    development of accounting.
    The Industrial Revolution
    (1760-1830)
    Mass production and the
    great importance of fixed
    assets were given attention
    during this period.
    19th Century – The Beginnings of Modern
    Accounting in Europe and America
     Inthis period rapid changes in accounting practice and
    reports were made. Accounting standards to be observed
    by accounting professionals were promulgated. Notable
    practices such as mergers, acquisitions and growth of
    multinational corporations were developed.
     Inthis period rapid changes in accounting practice and
    reports were made. Accounting standards to be observed
    by accounting professionals were promulgated. Notable
    practices such as mergers, acquisitions and growth of
    multinational corporations were developed.
    The Present - The Development of Modern
    Accounting Standards and Commerce

    The accounting profession in the 20th


    century developed around state
    requirements for financial statement
    audits.
    Beyond the industry's self-regulation, the
    government also sets accounting standards,
    through laws and agencies such as the
    Securities and Exchange Commission (SEC)
     Aseconomies worldwide continued to globalize,
    accounting regulatory bodies required accounting
    practitioners to observe International Accounting
    Standards. This is to assure transparency and reliability,
    and to obtain greater confidence on accounting
    information used by global investors.
     Nowadays, investors seek investment opportunities all
    over the world. To remain competitive, businesses
    everywhere feel the need to operate globally.
     Thetrend now for accounting professionals is to observe
    one single set of global accounting standards in order to
    have greater transparency and comparability of financial
    data across borders.
    Thank you!!!
    I hope the presentation guides you
    a lot.
    Keep safe!!!
    See you in our next virtual class
    session.

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