RSSCategory: Timeout

Blaggers Guide – Part 2

| January 1, 2008 | 0 Comments

Do accountants look down on other professions? Accountants look down on everyone. But mostly they look down on actuaries, who – accountants say – use their personality as contraception. An actuary is the person who prepares statistical charts for insurance companies telling, for instance, what age you are most likely to die at and what […]

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Part 2 – Ancient Accounting: Dawn of Man through Luca Pacioli

| January 1, 2008 | 0 Comments

In attempting to explain why double entry bookkeeping developed in 14th century Italy instead of ancient Greece or Rome, accounting scholar A. C. Littleton describes seven “key ingredients” which led to its creation. Private property: The power to change ownership, because bookkeeping is concerned with recording the facts about property and property rights. Capital: Wealth […]

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Part 3 – Accounting In Mesopotamia, circa 3500 B.C.

| January 1, 2008 | 0 Comments

Five thousand years before the appearance of double entry, the Assyrian, Chaldaean-Babylonian and Sumerian civilizations were flourishing in the Mesopotamian Valley, producing some of the oldest known records of commerce. In this area between the Tigris and Euphrates Rivers, now mostly within the borders of Iraq, periodic floodings made the valley an especially rich area […]

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Part 4 – Accounting In Ancient Egypt, China, Greece and Rome

| January 1, 2008 | 0 Comments

Governmental accounting in ancient Egypt developed in a fashion similar to the Mesopotamians. The use of papyrus rather than clay tablets allowed more detailed records to be made more easily. And extensive records were kept, particularly for the network of royal storehouses within which the “in kind” tax payments were kept. Egyptian bookkeepers associated with […]

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Part 5 – Medieval Accounting

| January 1, 2008 | 0 Comments

The thousand years between the fall of the Roman Empire and the publication of Luca Pacioli’s Summa are widely viewed as a period of accounting stagnation, and medieval practices outside Italy are often ignored in historical summaries. Yet, as historian Michael Chatfield has observed, medieval agency accounting, “laid the foundations for the doctrines of stewardship […]

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Part 6 – Ancient Accounting: Dawn of Man through Luca Pacioli

| January 1, 2008 | 0 Comments

The innovative Italians of the Renaissance (14th – 16th century) are widely acknowledged to be the fathers of modern accounting. They elevated trade and commerce to new levels, and actively sought better methods of determining their profits. Although Arabic numerals were introduced long before, it was during this period that the Italians became the first […]

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Part 7 – Luca Pacioli and The Summa

| January 1, 2008 | 0 Comments

Luca Pacioli was a true Renaissance man, with knowledge of literature, art, mathematics, business and the sciences, at a time when few could even read. Born about 1445 at Borgo San Sepulcro in Tuscany, Frater Luca Bartolomes Pacioli acquired an amazing knowledge of diverse technical subjects – religion, business, military science, mathematics, medicine, art, music, […]

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Part 8 – Pacioli's System: Memorandum, Journal and Ledger

| January 1, 2008 | 0 Comments

“De Computis” begins with some basic instruction for commerce. The successful merchant, declares Pacioli, needs three things: sufficient cash or credit, good bookkepers and an accounting system which allows him to view his finances at a glance. Before commencing business, one should prepare an inventory listing all business and personal assets and debts. This inventory […]

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Part 9 – Significance of the Summa

| January 1, 2008 | 0 Comments

In the first century after its publication, the Summa was translated into five languages, and numerous books on double entry bookkeeping appeared in Dutch, German, English and Italian whose descriptions were obviously lifted from “De Computis.” Many consider these works inferior explanations of the system so clearly articulated by Pacioli. One historian has described the […]

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Part 10 – Scotland – Birthplace of the Modern Profession

| January 1, 2008 | 0 Comments

[Excerpts in this section from Richard Brown’s 1905 Treatise, “A History of Accounting and Accountants,” courtesy of the publisher.] It is not unfitting that when we come to deal with the modern profession of accountant, Scotland should occupy the place of priority. It is there that the Chartered Accountant originated, and in Scotland we find […]

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