The particulars of transaction and financial relationships between different parties have been written up in the form of financial records since the dawn of civilisation, examples being Babylonian clay tablets and records from the Roman and Greek civilisations.
Our present system of accounting has its origins in Renaissance Italy. By the 12th century the bustle and extent of the wide-ranging trading activities engaged in by the Italian city-states had created the need for an effective system of financial recording which could accurately determine the results of large volumes of transactions involving several parties. Consequently, the double-entry system of bookkeeping, the basis of our modern accounting system, was developed.
During the renaissance, this system of accounting became known throughout Europe; by the 16th century it was standard practise in England, Germany and Holland. The first published description of the double-entry system appeared in Venice in 1494. Written by Luca Paciolo, it was entitled Summa de Arithmetica Geometria et Proportionalita.
The 18th century saw the emergence of another factor that exerted considerable influence on the development of accounting, namely the Industrial Revolution.
There was a tremendous increase in the nature and scope of manufacturing enterprises, trading activities had become far more complicated and extensive and therefore effective methods of planning and control were essential. These needs led to the emergence, out of cost accounting, of management accounting, the specific function of which is to provide whatever financial information may be required by the management of the enterprise for the purpose of planning and control.
The influence of electronic data processing (EDP) on accounting has been of paramount importance in the second half of the 20th century. It should be borne in mind, however, that EDP is purely a technology that has produced a dramatic increase in the speed at which large volumes of data can be processed. Although it has influenced the utilisation of accounting information, it nevertheless has had no effect upon the theory. The computer has made accounting information more effective chiefly in that it is now more complete, easier to understand and more readily available.
These days there are a large number of accounting software packages that are available to individuals, small and medium size enterprises and large corporations. The type of enterprise and internal operating systems will determine the type and size of accounting package that is used. In order for the enterprise to make investment decisions, a proper accounting structure must be in place. Accounting packages are just a tool to interpret the ‘language’ of the financial world – an instrument for transmitting information. Users of financial information expect accurate and comprehensive information that cannot be provided by general spoken or written language, so accounting was developed to satisfy this specialised need. By virtue of its nature, accounting information is historical. Historical trends do, however, serve as valuable guidelines for future projections.
By: Michael Russell
Posts Tagged ‘Effective System’
The Development Of Accounting
December 30th, 2009Forex Made Easy Makes Earning Money in FX Markets Easy, With a Simple to Learn and Effective System
December 12th, 2009
Let’s play word association; making money in the FX markets is to hard work as becoming a professional football player is too vigorous training? True or False? False is the answer, although in most cases in this industry it is true, but with a trading technique called Forex Made Easy it is false.
How could this be? Well, the discoverer of this investing method was not a professionally trained investor who spents years receiving an MBA at an Ivy league university nor had he been in the FX field very long. He was an intelligent person though, a retired pilot who was forced to stop flying because the regulations state you are not allowed to fly commercially past the age of sixty.
He was essentially bored sitting at home with nothing to do and somehow become interested in the currency markets. He would watch the markets twelve to fourteen hours a day looking for something that would tell him which way a currency was going to move. After months of doing this, almost by accident he discovered that if he look at this one little thing (Called a Forex Indicator, by Professionals in the Industry) it would you inform him of which direction a particular currency would move for the next few hours.
So, he kept his eye on it and began investing small sums of money, trying it out and attempting to determine if it would work for a sustainable period and produce long term income. Well, it did and he began to tell all his friends about how easy it was to make money by just doing this one little thing. His friends tried it, and they made money with it and told him he should write a book on his discovery.
He ended up taking there advice and wrote an E-Book, since then he has added many videos to his currency course where he instructs his process. He did not even know it at the time, but what he was teaching was one of the most popular and profitable techniques utilized by professional currency investors called “Forex scalping.”
Forex made easy is taught in a class called Forex Trading Made E Z. This program has been around for years and is one of the most popular and best selling training systems for the FX markets ever. Talk about getting lucky, not only does the guy make millions trading each year, working less than an hour a day. His books and videos also make him millions more. Some people were just born with a golden spoon in there mouths. It only takes five minutes to review his website and determine if it might be something you want to try. Let’s put it this way, I am sure you have wasted five minutes before in a much more frivolous fashion.
By: William Alheim Jr