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The birth of Accounting

Accounting has a long history in China. According to historical records, as early Western Zhou era has specialized in the official accounting of income and expenditure of the office finances and taxes – the Secretary will, and the balance of property taken “in months-old will” (count it as a sporadic, the total cost-effective of the Council) method. Also appeared in the Western Han Dynasty called “account book” or “Book Books” books for registration of transactions. With officials in subsequent dynasties have managed land tax, property tax and income and expenditure. Song Guanting in processing claims or transfer land tax, to fabricate a “Four-inventory”, by “the old tube (beginning balance) + new income (current income) = fire (current expenditure) + is (end of period balance)” the balance formula checkout, material property changes in the current period changes in the balance sheet and results. This is the accounting discipline in the development of a major achievement. Late Ming and early Qing dynasties, handicraft industry and commerce with, there have been four column-based “Dragon Pulse,” which put all the accounts classified as “advance” (the income), “payment” (expenditures), “deposit” (the assets), “the” (the debt) in the category, the use of “progress – payment = deposit – the” balanced formula accounting, general ledger set up a “classified records”, and the preparation of “progress payment table “(ie income statement) and” save the table “(ie balance sheet), the implementation of dual calculate profit and loss, calculated in both the profit and loss table number should be equal, known as” co-Dragon, “to check all accounts positive error. After that, it had a “four-footed account” (also called “Heaven and accounts”), this method is: for each a registered both accounts “to account” and also registered “to account” to reflect the same accounts context. “Four-inventory”, “Dragon accounts” and “legs Account” shows the different historical periods of Chinese people’s characteristics, traditional Chinese books.

Modern accounting is a product of the commodity economy. 14,15 century, capitalist commodity currencies of the European rapid economic development, promote the development of accounting. The main signs: First, to use monetary measurement of the value of accounting; Second, extensive use of double-entry method to form the basic characteristics of modern accounting and development of the cornerstone. Since the 20th century, especially after World War II, capitalist production has been an unprecedented degree of social development of modern science and technology and economic management of the rapid development of science. By social, political, economic and technological environment, the traditional financial accounting continuously enriched and improved, so that the work of more standardized financial accounting, general and standardized. At the same time, the accounting discipline in the 20th century, 30 years on the basis of cost accounting, work closely with the modern management theory and practice needs, gradually formed to provide internal management information, management accounting systems, so that’s something from the traditional accounting After the account, afterwards, reimbursement, prior to the forecast and decision-making, something in the supervision and control, accounting and analysis afterwards. Production and development of management accounting, accounting history of a great change since then, the formation of a modern accounting financial accounting and management accounting are two branches. With the rapid development of modern production, raising the level of economic management, computer technology is widely used in accounting, accounting information so that the collection, classification, processing, feedback and other procedures out of the traditional manual operation, greatly increased the efficiency to achieve a fundamental change in accounting science.

From a different perspective of the accountant, can come to different understanding of the nature of accounting. These perceptions can be summarized as:

(1) accounting is to reflect and monitor the process of material production as a way to manage the economy.

(2) accounting is a collection, processing and distribution of economic information in information systems.

(3) The accounting treatment through the collection and use of economic information, to organize economic activity, control, regulation and guidance, and prompted a comparative analysis emphasizes the value of economic benefits to the activities of a targeted management activities.

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