8 Questions
What is the main purpose of accounting?
Communication of accounting information
Who is credited with explaining the principles of Double Entry Book-keeping in the 15th century?
Luca Pacioli
Which form of business entity follows the expanded financial information system?
All forms of business entity
What event led to the recognition of the idea of financial accounting based on the Double Entry principle?
Industrial Revolution
When was a modern system of accounting, as followed at present, developed?
15th century
What are the two main statements used for communicating accounting information?
Profit & Loss account, Balance sheet
What separated ownership from management, leading to the recognition of financial accounting based on Double Entry principle?
Joint stock companies
Who were to be safeguarded and acquainted with the performance of companies, leading to the need for financial accounting?
Shareholders and others interest
Explore the evolution of accounting as a language of business communication from ancient civilizations to the modern system of Double Entry Book-keeping. Understand the definition and scope of accounting as a discipline that traces back to the beginning of the use of money.
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