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.

Speaker

• Kevin of U.S. Accounting Lessons PH.