Summary of "Lesson 003 - Introduction to Accounting"

Introduction to accounting is the focus of Lesson 003, providing an overview of the field and its importance in making economic decisions.

Definition of accounting

Accounting is a service activity that provides quantitative financial information about economic entities to aid in decision-making.

Function of accounting

Accounting provides quantitative financial information to help owners or managers make decisions.
Maintain systematic records.
Communicate financial results.
Meet legal requirements.
Protect assets.
Assist management.

Nature of accounting

Accounting is considered an art.
Financial in nature.
A process.
An information system.

History of accounting

Accounting dates back over 7,000 years to ancient civilizations like Mesopotamia and has evolved to include the double-entry bookkeeping system introduced by Luca Pacioli in 1494.