A Brief History of Accounting

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Accounting is involved in the recording, analyzing, classifying and interpreting of the financial affairs of a business. Accounting is a science that is involved in the recording, monitoring and assessment of the financial affairs of a business at any time.

Accounting was developed in ancient times. The system we have today arose from that ancient development. We know that previous communities kept primitive records by way of drawings on rocks or caves or cutting into trees. Later on these records were put onto stone and paper which were a lot easier to use and had a longer life.

One of the first editions of complete documentation about how to keep books of accounting was written by a professor of mathematics in Rome. This documentation described the double-entry system of accounting which was used by the Venetian merchants. It was adopted and still used today around the world.

Luca Pacioli was the man who invented double-entry accounting around 1494.

This form of double-entry accounting is sometimes known as Italian accounting because it is called after the Venetian people that developed and used it hundreds of years ago. Since that time, accounting has become far more complex and sophisticated but the principle of double-entry that arose from that initial development has never changed.


To be truly effective, organizations should interact with their external environment. The external environment can be divided into the general or mega environment and the specific task environment. Social responsibility refers to the obligation of a business firm to enhance the condition of society along with its own interests. Business firms are accountable to six major stakeholder groups: shareholders, employees, customers, creditors and suppliers, society and the government.

Social responsiveness refers to the ability of a firm to implement policies and take part in activities that would benefit both society and...
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