This slide is all about Introduction to Accounting. Nature of Accounting, History or Origin of Accounting. This is for ABM (Accountancy, Business and Management) Students, or Students who are taking up business and accounting program. Accounting is a service activity to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. Fra Luca Pacioli is acknowledge as the father of modern accounting because of this. His “Summa de Arithmetica, Geometria, Proportioni et Proportionalita” ( Everything about Arithmetic, Geometry and Proportion) is the first book printed with a treatise in bookkeeping. Bulla (plural Bullae) found in Mesopotamia. Experts consider this stage of record keeping the beginning of the art of writing. The original bulla was a lump of clay molded around a cord and stamped with a seal. Once the clay has dried, the container (such as a vase or money bag) cannot be violated without visible damage to the bulla, thereby ensuring the contents remain tamper-proof until they reach their destination.

1. INTRODUCTION TO
ACCOUNTING
BY: MR. JET MICHAEL F. DELA CRUZ

2. DEFINITION OF ACCOUNTING
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

3. ACCOUNTING
 It is a service activity to provide quantitative information,
primarily financial in nature, about economic entities that
is intended to be useful in making economic decisions.
- Accounting Standard Council

4. ACCOUNTING
 Is an information
system that measures,
processes and
communicate financial
information about
economic entity.
- Financial Standard Boards,
1978

5. ACCOUNTING
 Is the process of identifying, measuring and
communicating economic information to permit informed
judgements and decisions by users of information.
(American Accounting Association, “A
Statement of Basic Accounting Theory”
1966)

6. ACCOUNTING
 It is an art of recording, classifying, and summarizing in a
significant manner in terms of money, transaction and
events which are, in part at least, of a financial character,
and interpreting the results thereof.
(American Institute of Certified Public
Accountants)AICPA

7. NATURE OF ACCOUNTING
Accounting is a Process
Accounting is an Art
Accounting deals with Financial Information
Accounting is a means and not end
Accounting is an Information System

8. ACCOUNTING IS A PROCESS
A process is composed of multiple steps that leads to a
common end goal

9. ACCOUNTING IS AN ART
It entails creativity and skills to help us attain some
objectives. Accounting is the art of recording, classifying,
summarizing and finalizing financial data.

10. ACCOUNTING DEALS WITH THE FINANCIAL
INFORMATION
These are the only events identified by the accountant,
recorded in the books and communicated to different
parties.

11. ACCOUNTING IS A MEANS AND NOT AN END
Accounting is a tool to achieve specific objectives. It is not
the objective itself.

12. ACCOUNTING IS AN INFORMATION SYSTEM
Accounting is recognized and characterized as a
storehouse of information. As a service function, it collects
processes and communicates financial information of any
entity.

13. HISTORY/ORIGIN OF
ACCOUNTING

14. HISTORY OF ACCOUNTING
It is believed that the history of accounting is thousands of years
old and can even be traced to ancient civilizations. A number of
history books suggest that the early development of accounting can
be dated back to ancient Mesopotamia.
During those times, people followed a system of writing and
counting money. The development of accounting may be related to
the taxation and trading activities of temples.

15. ACCOUNTING AND ITS ENVIRONMENT
I. Early Development in Mesopotamia
 People followed a system of writing and counting money. The
development of accounting may be related to the taxation and trading
activities of temples.
 Bulla (plural Bullae) found in Mesopotamia. Experts consider this stage of
record keeping the beginning of the art of writing. The original bulla was
a lump of clay molded around a cord and stamped with a seal. Once the
clay has dried, the container (such as a vase or money bag) cannot be
violated without visible damage to the bulla, thereby ensuring the
contents remain tamper-proof until they reach their destination.

16. ACCOUNTING AND ITS ENVIRONMENT
II. Development in the Roman Empire
 The reign of Emperor Augustus (63BC-14AD) provided more evidence
about the development of accounting.
 The Roman government kept detailed financial information of the deed
of Emperor Augustus regarding the stewardship of Roman resources.
Roman historian Suetonius and Cassius Dio recorded that in 23BC,
Augustus prepared rationarium (account) which listed public revenues, the
amounts of cash in the aerarium (treasury), in the provincial fisci (tax
officials), and in the hands of the publican (public contractors); and that it
included the names of the freedmen and slaves from whom a detailed
account could be obtained.

17. ACCOUNTING AND ITS ENVIRONMENT
III. Dissemination of double-entry bookkeeping in the 14th
century, Italy
 Most important event in the history.
 Fra Luca Pacioli is acknowledge as the father of modern accounting
because of this. His “Summa de Arithmetica, Geometria, Proportioni
et Proportionalita” ( Everything about Arithmetic, Geometry and
Proportion) is the first book printed with a treatise in bookkeeping.

18. ACCOUNTING AND ITS ENVIRONMENT
III. Signing the charter by Queen Victoria
 The modern profession of the chartered accountant originated in Scotland in the
19th century when Queen Victoria granted a royal charter to the Institute of
ACcountants in Glasgow.
IV. Formation of accounting standards such as PAS and PFRS

19. FUNCTIONS OF ACCOUNTING

20. FUNCTIONS OF ACCOUNTING
• Maintenance of systematic records
• Financial results of an entity ca be communicated
• Meeting legal requirements
• Protecting assets of a business
• Assistance to management

21. ASSIGNMENT
• Make a research about Branches of Accounting.

22. THE END
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