history n origin of accounting key words

Record business transactions

Know if one was successful financially

Know how much assets they owned and how much liability they owed

The need for accounting started because people:

Mesopotamia, Egypt, n Babylon

Accounting started in the Middle East in these countries

Clay tokens w various shapes n markings representing different goods

Traders in the Middle East made these in order to ensure everything was accounted for

Bollae

Clay tokens would be placed into this ball of clay to be dried in the sun, given to the boatman, then to the buyer to be broken down. This word also means bowl

Barter system

Jericho, an ancient city near the Jordan river, used this form of accounting

Barter system

An exchange of one class of goods to another.

Clay tokens to envelopes, now both were to be used together

What evolved into the ancient version of a balance sheet?

Marking clay tablets with sticks

How did early sumerian cities’ bookkeepers account their currency?

Abacus and papyrus

The need for accounting, calculating, n writing led to the creation of this

Papyrus

Paper-like material used for record-keeping n administration such as tax receipts and doc documentations.

To account their wealth and tribute payments from other kingdoms.

Why did rulers use accounting methods?

Bronze and Iron Age

The advancements of metalwork in these ages paved the way for improvement of accounting.

More complex tokens with markings and linings to differentiate inventory, transactions, and affected parties

Due to the innovations of the Bronze and Iron Ages, this was created

Advanced tablets whose markings and signs provided tallies

Complex tokens of the Bronze and Iron Ages gave way to this

The Code of Hammurabi

Created at 1760 BC in Babylon. It standardized weights and measures, and provided guidance on commercial transactions and payments.

13, The introduction of double-entry bookkeeping

When Medieval Europe moved towards a monetary economy in the _____ Century; one important breakthrough happened: ________.

Double-entry bookkeeping

Any bookkeeping system that has both “debit” and “credit” entries for each transaction.

Debere

Latin word meaning “to owe”

Debitum

Latin word referring to: what is due or something owed

Credere

Latin word: to entrust

Creditum

Latin word: something entrusted to another or a loan

Luca Pacioli

Was the first to describe the system of debits and credits in journals n ledgers that is still the basis of today’s accounting systems.

Father of Accounting

Summa de Arithmetica, Geometria, Proportioni et Proportionalita (Summary of arithmetic, geometry, proportions and proportionality)

An Italian book on mathematics in 1494, containing a comprehensive summary of Renaissance mathematics, practical arithmetic, basic algebra, basic geometry and accounting.

De Computis et Scripluris (Of Reckonings and Writings)

Covered commerce-related concepts aside from double-entry bookkeeping