To write an excellent dissertation, you are required to have an in-depth understanding of whatever subject matter you intend to discuss, be it finance or accounting this rule is no different. The first step to kick-start your dissertation is getting a clear view of finance, accounting and the relation between both concepts, and these matters will be explored below.
Finance involves the aspects of raising money for a reason. In business terms, financial management is concerned with the methods in which funds are raised for a business and how they are invested. Accounting, in its turn is related to the collecting, analyzing and presenting financial information in a way that helps stakeholders make more effective financial decisions. So in layman terms, finance and accounting is the process of raising money and investing it in business. Accounting provides clear means of communicating or understanding how these funds were invested and returned. All this helps to make better investment decisions in the future. In this article you will find interesting and valuable information about finance and accounting, usage of which will help you form general understanding of the matter.
10 Interesting Facts on Finance and Accounting
- Accounting originates from a French word. The term accounting like most English words has its origins from a foreign language and in this case, the French language gave a birth to the term. Accounting comes from the French word ‘Compter’ which means to count, counting or keeping scores.
- Luca Pacioli is the father of accounting. Luca Pacioli was an Italian mathematician who believed in the importance of keeping tabs on a business’s credit and debit activities. To educate the public on how important this was, he wrote the first accounting textbook, ‘Summa de Arithmetica, Geometria, Proportioni et Proportionalita’ which described how to keep account of assets, expenditures, and liabilities in 1494. This book set the tone for the use of ledgers and balance sheets in the field of accounting.
- Ancient Mesopotamia was home to the world’s first accountants. Ancient Egypt, Mesopotamia to be precise has been credited as the cradle of civilization for a couple of reasons and accounting is one of them. In Mesopotamia, the need to keep tabs on temple spending and earnings as well as tax collection led to the development of tax books, bookkeeping, and accounting as a whole. Historians also believe that the art of writing which was first developed in Mesopotamia also developed from a necessity to perform some bookkeeping activities.
- Financial Accounting is a field in the accounting profession. The field of accounting is divided into multiple areas of study which a practicing accountant can seek a degree in. Some of the more notable subsets of accounting include: financial accounting, management accounting, and auditing and tax accounting. Financial accounting consists of organizing and reporting an organization’s financial information to the public for the use of investors and government agencies.
- The World’s first financial institution was built in Italy. Finance and accounting have gained a lot from the efforts of the early Italian mathematicians and statisticians and one of these gains is the first bank ever created. The Monte de Paschi di Siena which was built in 1472 takes the enviable position of becoming the first financial institution and bank ever built by man. It was founded by the magistrates of Siena to serve as a ‘mount of piety’ which is basically a pawn broking organization. Currently, Berkshire Hathaway is the biggest financial service institution regarding revenue as it generates $210billion annually.
- The concept of a share market traces its origin to Ancient Rome. Although the exact moment the stock market got its inception is still disputed, finance scholars agree that the earliest known share market was in ancient Rome. During the Roman Republic era, there were ‘Societates publicanorum’ – organizations which took up the financial responsibility of a certain event in the city. In 1602 the founding of the Dutch East Indian Company has been credited as a key point in the formation of a share market because precisely for this event legal rules, regulation and a particular market structure were introduced.
- Income statement and the statement of financial position serve different purposes. The statement of financial position is a snapshot of the makeup of a business’s wealth at a particular time while income statements are concerned with the flow of capital over a period of time. Both concepts are related to one another, though, an income statement is the link between the statement of financial position at the beginning and the end of a financial reporting year.
- Finance and accounting play a significant role in law enforcement. Forensic accounting is a field of accounting that places its emphasis on enforcing the law through the research and cross-checking of the financial position of suspected individuals and organizations. Forensic accountants work directly with law enforcement and make careers in the biggest enforcement agencies globally.
- Financial accounting is guided by both local and International Standards. To practice in the field of finance and accounting, one must have received a higher education degree. A At the same time, higher education is not enough to perform duties of the professional accountant. In the majority of countries accountants need to be additionally licensed and enter particular unions, establishing working standards, which are formed at the international level but can be changed according to the local peculiarities.
- The first certified public accounting exam was incorporated in the US. In 1896, the state of New York encountered the importance of having a unified level of understanding on the subject of accounting by all accountants. To ensure this was possible, the first certified public accounting exam was enlisted to certify practicing accountants.
Here we come to the end of the first article in the series of tutorials that cover dissertation writing on the subject of finance and accounting. For further reading, it is recommended that you go through the other articles in the series for they will provide directions such as 20 topics for a dissertation in finance and accounting to help you come up with topics as well as a guide on making a dissertation in finance and accounting. Also, you can visit our dissertation writing service which is always available online.
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