2. Accounting is a process of
recording , classifying ,
summarizing financial transitions
to provide information that is
useful in making business
decisions .
MEANING
3. Accounting is as old as human
civilization . The modern system
of accounting was developed by
luca pacioli , who lived in Italy in
15th century . In those early
days business organization and
transitions was not so complex
because at that time businesses
were run on a small scale but
industrial revolution
HISTORY &
DEVELOPMENT
4. resulted large scale production which make the process of accounting more
complex . Earlier , accounting was considered simply as a process of
recording business transitions and the role of accountant as that of record-
keeper but now accounting is considered as a tool of management
providing vital information concerning the organization’s future .
5. WHY DO WE
NEED
ACCOUNTING ?
• Systematic recording of transactions
• Determination of profit and loss
• Decision Making
• Providing information to interested
parties
