Accounting

Brief History of Accounting

The seeds of accounting were most likely first sown in the city of Babylon around 4000 B.C. when record keeping probably commenced in this civilized area. Babylon prided itself as the city of commerce which surfaced as the language of business. Luca Pacioli, a Franciscan friar, is known to be the father of accounting. The publication of his great book Summa de Arithmetica, Geometria, Proportioni et Proportionalita in Venice in 1494 reflected his deep knowledge of business and bookkeeping as the initial printed project regarding double entry book keeping. The system he published included most of the accounting cycle as we know it today. He described the use of journals and ledgers, and warned that a person should not go to sleep at night until the debits equalled the credits! What is accounting? For most people, accounting does not concern them because they think of it as a laborious activity performed by people who are 'good with numbers'. Accounting is often confused with the narrow concepts of record keeping and bookkeeping. Accounting of course is much broader than that. "Accounting is the system that measures business activities, processes that information into reports and communicates these findings to decision-makers". The accounting system produces financial statements that report on an individual's or an organization's business in monetary amounts. Who Uses Accounting Information? • Individuals • Businesses • Investors and Creditors • Government Agencies • Taxing Authorities • Non-Profit Organizations • Other Users including employees, consumer groups, labour unions and the general public. Accounting is simply the process of identifying, measuring and communicating information to permit informed judgement and decisions by the users of the information. Today, many people are proudly involved in the prestigious profession of accounting. Dedicated individuals spend their time practicing, teaching and researching accounting in various ways. Since accounting is the language of business, the nation’s economy heavily depends upon the work of these accountants. Thus, the knowledge of accounting has served and continues to serve a vital role in society. Unlike other fields of study, accounting is one such area which is not only used by the office workers or highly qualified personnel, but also often used by the layman for various purposes in daily living. Accounting is therefore an area where students need some training at school. The aims of the Accounting Department are as follows:  To develop an understanding of the role of accounting in providing an information system for monitoring and decision-making.  To develop an understanding of accounting concepts, principles, procedures and terminology.  To develop skills in preparing and interpreting accounting information.  To develop knowledge and understanding of the aims and activities of business and non-trading organizations, their accounting implication and the accounting techniques and procedures appropriate to them.  To develop skills of numeracy, literacy, communication and enquiry.  To encourage attitudes of accuracy, orderliness, logical thought and an appreciation of professional ethics.