Accounting involves systematically recording and reporting financial transactions and allowing analysis of a business's financial performance. It has been a key part of business since the 15th century when Luca Pacioli first described the double-entry bookkeeping system still used today. Accounting standards have evolved over time due to demands from investors, regulations like Sarbanes-Oxley, and scandals such as Enron. Accounting provides crucial financial information for decision making and is important for managers, investors, creditors, and other stakeholders to evaluate financial performance and plan for the future.