Accounting, Impact on Organizations and Society
Lawrence G. Singleton
Accounting is a systematic process of measuring and reporting to various users relevant financial information for decision making that deals with the economic activity of an organization. Accounting has had a significant impact on the economic development of societies and the organizations therein throughout modern history, as investors, creditors, regulators, and other interested parties have sought to measure the performance of corporations and other business enterprises. The Italians of the Renaissance (14th through 16th centuries) are considered to be the fathers of modern accounting. They elevated trade and commerce to new levels and, like no other group before them, sought better methods of measuring their performance and profitability. The modern double entry accounting system is often credited to the work of Fra Luca Bartolomeo de Pacioli, an Italian mathematician, Franciscan monk, and a collaborator of Leonardo da Vinci. He described a method of accounting that was being used by many ...