History of Accounting

Paper Summary:

In this paper, the author traces the history of accounting from the days of early civilization by looking at its gradual development over the next centuries during which writing was invented by accountants; the "invention" of money, banking, and credit during the ancient Greek and Roman civilizations; the introduction of the innovative double entry bookkeeping system by accountants in the 16th century that fueled the Italian Renaissance; the use of sophisticated cost accounting techniques by smart entrepreneurs during the Industrial Revolution; the expanding role of accounting in businesses in the late 19th and early 20th century, and finally, the current state of the accounting profession.

Outline:
The Earliest Traces of "Accounting" in History
Mesopotamian Accountants Invent Writing
Accounting in Ancient Egypt and China
Invention of Coined Money and Banking
Accounting in Medieval Age
Invention of Double Book-keeping by Italian Merchants
Accounting's Role in the Industrial Revolution
Expanding Role of Accounting
The Current State of the Accounting Profession

From the Paper:

"Increasing government regulations such as the Bankruptcy Act of 1869 in Britain increased the accountants' role in bankruptcy and liquidations. The Companies Act of 1862 required banks to be audited and the audit became mandatory for all public companies by the end of the century. This further expanded the role of the accountant in auditing. Industrialization in other countries of Europe and the United States at the end of the 19th century and early 20th century, and the rise of big business coincided with the invention of important accounting and business gadgets such as the calculator, typewriter, and tabulating machines. This gave a further boost to accounting and it gradually became an established profession. Accounting firms such as Cooper Brothers (later, Coopers & Lybrand) were formed and big business firms such as Carnegie Steel adopted sophisticated cost accounting to control operations, cut costs, and even eliminate competition to earn huge profits (Ibid). Du Pont, J.P. Morgan, Standard Oil, and General Motors were other big business firms in the U.S. that thrived after adopting modern cost accounting methods."

Sample of Sources Used:

• Alexander, J.R. (2002). "History of Accounting." Association of Chartered Accountants in the United States. Retrieved on July 7, 2007 from http://www.acaus.org/acc_his.html
• Colson, R.H. (2002). "CPA Journal Education Forum Anticipates Future." The CPA Journal, 72 (8). 20+.
• Gabbin, A. L. (2002). "The Crisis in Accounting Education; the CPA's Role in Attracting the Best and the Brightest to the Profession." Journal of Accountancy, 193(4), 81+.
• Giroux, G. (n.d.) "2. Who Was The First Accountant?" Chapter from A Short History of Accounting & Business. Retrieved on July 7, 2007 from http://acct.tamu.edu/giroux/FIRST.html
• -------------. (n.d.) "1. From the Ancient World to the Enlightenment." Chapter from A Short History of Accounting & Business. Retrieved on July 7, 2007 from http://acct.tamu.edu/giroux/AncientWorld.html

More papers on History of Accounting:

• Essay # 65799 : "The History of Accounting"
• Book Review # 118050 : "The History of the Peloponnesian War"
• Research Paper # 65790 : "Apartheid and the History of South Africa"

APA Citation:

MLA Citation: