Key Concepts Of Accounting Essay

theoretical explanations of key concepts Management is constantly confronted with the problem of alternative decision making especially knowing that resources are relatively scarce and limited. It is therefore pertinent that good accounting information be made available for proper and accurate decision making, maximization of profitability and optimal utilization of scarce resource. Accounting is defined by Webster’s ninth new collegiate dictionary, as “the system of recording and summarizing business and financial transactions and analyzing, verifying and reporting the results. Accounting can be defined as an art of recording, summarizing, reporting, and analyzing financial transactions (Stan Snyder, 1997). Warren, et al., (2005) defined

The oldest known is the day tablets records of the payment of wages in Babylonia around 3600BC. There are numerous evident of record keeping and system of accounting control in ancient Egypt and in the Greek city states. The earliest known English records were compiled at the direction of Willia in the conqueror in Eleventh century to ascertain the financial resources of the Kingdom, (Fess and Niswonger) ( NZOMO, 2011). Accounting information include account, balance sheet, cost accounting system, fund book-keeping which dates back to the middle ages and a known description of the system was published in Italy in 1494 by Pacioli a Franciscan Mark Fess and Niswonger. It should be noted that the earlier known use of a complete double try book-keeping was Geneva Kin the year 1840, double entry is the system that requires entries to be made in the books of a business to give effect to both suspects of the transactions. The principal book of this system is the ledger(SIYANBOLA,