history, very early:
Accounting has been around since man started to
trade, thousands of
years B.C.Accurate records were even a necessity then for
that were involved in trading.
entry accounting invented:
- The double
entry type accounting that is used today was believed to have
been invented in Italy during the late 1400's. Double entry accounting
has debit and credit entries for each transaction. The purpose of
double entry accounting is to ensure that accounts remain in balance,
and assets plus liabilities equal owners equity. This was truly a huge
leap in record keeping and the world still uses this system, even after
all these years.
create new regulations:
- In relatively recent history, the profession
has been guided by generally
accepted accounting principles (GAAP). These
principles are intended to be the standards for the profession, which
all Accountants must comply with.
- The two organizations that are
responsible for creating new principles (GAAP), are:
- The Financial Accounting Standards Board
- The Securities and Exchange Commission (SEC)