HISTORY AND CONTEMPORARY DEVELOPMENTS AND FUNDAMENTAL ACCOUNTING CONCEPTS

Question 1

Around 7,500 BC, the Mesopotamians were using small clay objects as counters for keeping account of goods. Each object represented particular quantities of different types of commodities, such as food, clothing, and even labor.

Answer 1

The origins of accounting

Question 2

The ___________bookkeeping system we’re familiar with today was first properly described by Luca Pacioli in 1494. Referred to as ‘the father of bookkeeping and accounting, he defined much modern day thinking about debits, credits, journals, and ledgers.

Answer 2

Double-entry bookkeeping

Question 3

With industrialization came a need for more advanced accounting methods. The large corporations of the industrial revolution required cost accounting systems that addressed external sources of finance like shareowners and needed to be able to calculate and predict profits accurately, basing their operations on real financial data.

Answer 3

The Modern Accountant

Question 4

There is an abundance of accounting applications and modules to suit various business needs. With the advent of the Fourth Industrial Revolution, new technologies such as artificial intelligence, blockchain, and robotics are changing the business and work landscape and impacting the field of accounting in fundamental ways.

Answer 4

The information age and the Fourth Industrial Revolution

Question 5

It is an organization or a section of an organization that stands apart from other organizations and individuals as a separate economic unit.

Answer 5

Entity

Question 6

This concept allows the users to obtain timely information to serve as a basis on making decisions about future activities.

Answer 6

Periodicity

Question 7

This is the basis for ignoring the effects of inflation in the accounting records.

Answer 7

Stable Monetary Unit

Question 8

This assumption underlies the depreciation of assets over their useful life.

Answer 8

Going Concern