Essay - Accounting Theory Entails When an Ordinary Person Hears the Word...

Accounting Theory Entails

***** an ordinary person hears the word "accounting" the first thing that would probably come to his mind is an accountant he uses to do ***** income tax return during tax filing season. Or if he ***** in business, it is "***** *****" again who *****es h***** "books" to ensure t*****at they are in order so that ***** a government audit is done everything will be alright. These initial premises ***** accounting but are only part thereof of the bigger picture. Accounting is indeed much more and it does affect people's day-to-day life and even a nation's financial state. There ***** what is called accounting theory ***** before delving into its minute details, it is first important to look at some backgrounder on accounting and how it came into being as well how accounting evolved throughout the centuries.

***** accounting authors or experts would agree that accounting is ***** old as mankind and could be surmised that ***** moment early humans learned how to count, so did the birth of ***** came. In A Short History of Accounting and Business by Giroux, he writes: "T***** history ***** accounting is ***** old as civilization, among the most ***** professions in economic ***** cultural development, and fascinating. Accountants invented writing, developed money and banking, innovated the double entry bookkeeping system ***** fueled the Italian Rena*****sance, were needed by Industrial Revolution inventors and entrepreneurs for survival, helped develop ***** capital markets necessary for big business so essential for *****ism, turned into a profession that brought credibility ***** complex business practices ***** sparked the economic boom of the 20th century, and are central to the information revolution that is now transforming the global economy. (1999)" Critical to the previous statement are the terms "***** money and banking, [and] innovated the double entry bookkeeping system" considering nations were built not just on manpower but ***** and commodities that paid for the labor and infrastructures. Without a me*****ns ***** keeping track of the funds - ***** ***** was spent or how much money was coming in - great civilizations of h**********ry would never have *****en created. *****he adage "***** makes the world go round" was applicable ********** as it is now ***** the way money went around ***** through the prudent used of accounting theories and principles developed throughout the century.

Although accounting has been w*****h us since the dawn of civilization, there was a period in history when ***** went through ***** *****mal evolution. The well documented history of formal account*****g was "***** a Fr*****nciscan friar named Luca Pacioli in 1494 [wrote] in his paper Summa de Arithmetica, Geometria, Proportioni et Proportionalita (Everything About Arithmetic, Geometry and Proportion). The treatise described *************** bookkeeping - that for every credit entered into a ledger ***** must be a debit, ***** concept created by Florentine merchants and hailed by Goethe as 'one of the most beautiful discoveries ***** the human spirit.' (Arizona, 2006)" Thus, ***** ***** "***** ***** debit" are still in used today and