Intro to Accounting

• Accounting is regarded as a service activity because it provides service and the kind of service that it provides is accounting service.
• The function of accounting is to provide quantitative information which is primarily financial in nature.
• Luca Pacioli, an Italian mathematician and friar, published in 1494 the book Summary of Arithmetic, Geometry, Proportions, and Proportionality, which describes the accounting methods used by Italian merchants.
• In ancient civilizations, accounting was used for record-keeping and trade.
• Accounting can be traced back to ancient civilizations such as Egypt, Babylonia, Assyria, and Samaria.
• Early accounting records were found in the ruins of Asian Babylon, Assyria, and Samaria.
• The branches of accounting include financial accounting, management accounting, cost accounting, and other branches.
• During the Goryeo dynasty of Korea, merchants kept track of their businesses and trades through record-keeping methodologies.
• Accounting is a tool used to meet statutory requirements, protect assets, assist management, and provide information about the operations of an entity.
• Accounting was used in the Roman Empire as evidenced by the deeds of the divine Augustus.
• The double entry bookkeeping system was first described in the book of Luca Pacioli.
• Accounting dates back to more than 7,000 years ago in Mesopotamia.
• The double entry bookkeeping system, which is used in every business transaction, is a method where accounts are always affected on both the left and right sides.
• If a company's expenses are greater than what they earn, it's called a net loss.
• Accounting can be used as a communication tool to communicate financial information.
• Accounting maintains systematic records, which is a crucial function.
• Accounting is about managing entities, which can include businesses, nonprofit entities like churches or foundations, and even individuals.
• Accounting provides quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions and in making rational choices among alternative courses of action.
• Revenue minus expenses gives us net income.
• Accounting is regarded as an art because it is financial in nature.
• Accounting is a process with step-by-step procedures until we get to the end which is financial reports or financial statements.
• Accounting is also regarded as an information system due to the vast amounts of data and information that is available in accounting because it is a record-keeping methodology.
• Financial results of an entity can be communicated because of accounting, for example, an alarm can notify the owner of the company if there is a loss.
• Accounting is an art because it is a designed process that will give us an output in the end.
• Accounting is the language of business because it serves as a communication tool for the owners or managers of a company to understand the operations of the entity better in financial terms.