I. Intro - FABM 1

• Accounting is a service activity.
• Its function is to provide quantitative information
• Nature of Accounting:

  1. Art
  2. Financial
  3. Process
  4. Information System
• Functions of accounting:

  1. Maintenance of Systematic Records.
  2. Financial Results of an entity can be communicated.
  3. Meeting legal requirements.
  4. Protecting assets of a business.
  5. Assistance to management.
• Accounting can be traced to Ancient civilizations.
• Accounting record dating back more than 7,000 years.
• Accounting records have been found in Mesopotamia.
• Other early accounting records were also found in the ruins of ancient Babylon, Assyria, and Sumeria.
• The Roman Empire has access to detailed financial information as seen in the "The Deeds of the Divine Augustus".
• Records of Cash, commodities, and transactions were kept by military personnel of the Roman army.
• Korea: Goryeo Dynasty
• During the Goryeo Dynasty, the merchants kept track of their business and trades through record-keeping and methodologies.
• Luca Bartolomeo de Pacioli - father of accounting, Italian Mathematician, Franciscan Friar
• Summa de arithmetica, geometria, proportioni et proportionalita - by Luca de Bartolomeo de Pacioli
• Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions, and in making reasoned choices among alternative courses of action.

  Definition by Accounting standards Council