The emergence and development of accounting

The emergence and development of accounting



History and Development of Accounting



Accounting is the language of handling the affairs of life and the language of economic, social and financial as they are the language of business, they are logged on economic relations, financial and social terms of numbers. It is therefore essential for each facility to use accounting information in managing their work and a basis for decision-making and to identify the results of their work, as well as identify the types of investment and sources of funds, the basic function of accounting is to find the record governing the activities of daily economic, expressed in monetary units.



Genesis Accounting



Man knew accounting since the beginning of human civilization, and most studies indicate that more sophisticated accounting systems, the old system was defined by the Pharaohs in Egypt, where he records the accountant used to count the amount of the wealth of kings, emperors and pharaohs.

With the emergence and development of the Islamic state (after the year 600 AD) has developed accounting applications where established government offices and agencies concerned with public money and perhaps the most famous house of money established by the Caliph Omar Bin Al Khattab may Allah be pleased with him, has seen a medieval beginnings of accounting systems to account for assets of the farms owned by the feudal lords in England and recording of expenditures and revenues of those farms.



And until the beginning of the tenth century AD, was the accounting records primitive little more than notes prove the merchants and money-lenders their financial futures with others in order to show the implications of these transactions from the rights and obligations, and cash transactions merchant was evaluated through its control of personal without the need for registration was launched with a number this method in the recording of financial transactions single-term limitation.



The impact of the industrial revolution in the evolution of accounting where it has large-scale projects to replace the individual projects, the need arose to capital to finance large projects and management separated from ownership.

With the development of industrial companies and the emergence of monopolies and joint stock companies and then the multinational corporations and the emergence of giant companies from the industrial, commercial and financial, have developed accounting and numerous branches, means and methods, and found the bodies of the accounting independent has been operating on the development of accounting and conducting research and studies and make recommendations and the development of accounting principles that enable this flag to keep up with all economic developments.



The concept of accounting



The accounting system provides the backdrop to provide accounting information to managers and investors, customers and others through the menus and reports the different accounting and so on, the concept of accountability is a conversion of accounting data (inputs) to the reports and lists of (output), carrying out some operations such as registration and the tab and the summary by using some means to to produce this information.



The use of accounting



Accounting used in the various economic units that practice a certain activity in order to achieve a particular goal, regardless of the nature of this activity or legal form for these units, and that the use of accounting and a broad and multi-varies as economic units. And these units can be classified as economic, according to the following:



First: in terms of the nature of the activity:

1 - commercial: Kmencat wholesale and semi-wholesale and retail.

2 - Industrial: as factories that convert various raw materials to finished goods or semi-ready.

3 - extraction: agriculture, mining and petroleum.

4 - Finance: such as banks and insurance companies.

5 - Transportation: such as lines of ground and air and sea.

6 - the liberal professions: lawyers, accountants, engineers and doctors.

7 - Public Utilities: such as electricity, water and telephone.

8 - of non-profit organizations: such as electricity, water and telephone.

Second: In terms of legal form:

1 - individual projects: It includes all projects that are owned and managed by one person, the purchase and sale of goods by himself and is responsible for the project.

2 - businesses of all types: including all enterprises owned by more than one person, whether public or private.