Accounting
Japanese Name:
会計
Romaji Name:
kaikei
Description
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Accounting is the process of recording, summarizing, and analyzing financial transactions.
It helps individuals and businesses track income, expenses, and profits.
Accountants prepare financial statements like balance sheets and income statements.
Accounting ensures accuracy and transparency in financial reporting.
It supports decision-making by providing clear information about financial health.
There are different branches, including managerial, financial, and tax accounting.
Modern accounting uses software to automate many tasks.
History
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Accounting is one of the oldest professions, dating back over 7,000 years.
Ancient Mesopotamians used clay tablets to record trade and taxes.
Double-entry bookkeeping was developed in 15th-century Italy by Luca Pacioli.
This method improved accuracy by recording debits and credits.
Accounting grew with the expansion of commerce during the Industrial Revolution.
The 20th century saw the establishment of standardized accounting principles worldwide.
Technology, such as computers and software, transformed the field in recent decades.
Today, accounting is a global profession vital to business, government, and society.