History of Accounting

Accounting is a set of rules and methods by which economic information of a business is collected and made into reports that are useful to end users.

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C.P.A. stands for Certified Private Accountant.

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Luca Pauloi is considered as the father of modern accounting.

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Identification, recording and communication is the most important step in the accounting process.

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Verification is NOT a step in the accounting process.

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The performance of a car maintenance services of Toyota is a relevant economic event.

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Events that do not affect the company financially need not to be recorded.

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Preparing accounting reports is part of the communication aspect of accounting.

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Keeping a chronological diary of events is part of the recording aspect of accounting.

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To be identified as a relevant economic event, there should be a transfer of things with value.

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