Century 21 Accounting 11e Answer Key

[Terina]

Thefirst half of the 20th century was a time where accounting practices were evolving at a fast pace. Below is only a selection of titles found in the Library's collection that cover that period. This list includes a few basic titles as well as some titles written by early inductees of the Accounting Hall of Fame External. To see a list of titles in chronological order, please go to the Search the Library's Catalog page and after clicking on one of the subject headings, sort the titles by date. We have also included a number of encyclopedias, bibliographies, and dictionaries.

The following materials link to fuller bibliographic information in the Library of Congress Online Catalog. Links to digital content are provided when available. To locate additional materials, see the Search the Library's Catalog section of this guide.

The early development of accounting dates to ancient Mesopotamia, and is closely related to developments in writing, counting and money[1][4][5] and early auditing systems by the ancient Egyptians and Babylonians.[2] By the time of the Roman Empire, the government had access to detailed financial information.[6]

In India, Chanakya wrote a manuscript similar to a financial management book, during the period of the Mauryan Empire. His book Arthashastra contains few detailed aspects of maintaining books of accounts for a sovereign state.

The modern profession of the chartered accountant originated in Scotland in the nineteenth century. Accountants often belonged to the same associations as solicitors, who often offered accounting services to their clients. Early modern accounting had similarities to today's forensic accounting. Accounting began to transition into an organized profession in the nineteenth century,[9] with local professional bodies in England merging to form the Institute of Chartered Accountants in England and Wales in 1880.[10]

Accounting records dating back more than 7,000 years have been found in Mesopotamia,[11] and documents from ancient Mesopotamia show lists of expenditures, and goods received and traded.[1] The development of accounting, along with that of money and numbers, may be related to the taxation and trading activities of temples:

"another part of the explanation as to why accounting employs the numerical metaphor is [...] that money, numbers and accounting are interrelated and, perhaps, inseparable in their origins: all emerged in the context of controlling goods, stocks and transactions in the temple economy of Mesopotamia."[1]

Other early accounting records were also found in the ruins of ancient Babylon, Assyria and Sumer, which date back more than 7,000 years. The people of that time relied on primitive accounting methods to record the growth of crops and herds. Because there was a natural season to farming and herding, it was easy to count and determine if a surplus had been gained after the crops had been harvested or the young animals weaned.[11]

Between the 4th millennium BC and the 3rd millennium BC, the ruling leaders and priests in ancient Iran had people oversee financial matters. In Godin Tepe (گدین تپه) and Tepe Yahya (تپه يحيی), cylindrical tokens that were used for bookkeeping on clay scripts were found in buildings that had large rooms for storage of crops. In Godin Tepe's findings, the scripts only contained tables with figures, while in Tepe Yahya's findings, the scripts also contained graphical representations.[4] The invention of a form of bookkeeping using clay tokens represented a huge cognitive leap for mankind.[5]

During the 2nd millennium BC,[12] the expansion of commerce and business expanded the role of the accountant. The Phoenicians invented a phonetic alphabet "probably for bookkeeping purposes", based on the Egyptian hieratic script, and there is evidence that an individual in ancient Egypt held the title "comptroller of the scribes". There is also evidence for an early form of accounting in the Old Testament; for example the Book of Exodus describes Moses engaging Ithamar to account for the materials that had been contributed towards the building of the tabernacle.[2]

By about the 4th century BC, the ancient Egyptians and Babylonians had auditing systems for checking movement in and out of storehouses, including oral "audit reports", resulting in the term "auditor" (from Latin: audire, to hear). The importance of taxation had created a need for the recording of payments, and the Rosetta Stone also includes a description of a tax revolt.[2]

By the reign of Emperor Augustus (27 BC - AD 14), the Roman government had access to detailed financial information, as evidenced by the Res Gestae Divi Augusti (Latin: "The Deeds of the Divine Augustus"). The inscription was an account to the Roman people of Augustus' stewardship, and listed and quantified his public expenditure, including distributions to the people, grants of land or money to army veterans, subsidies to the aerarium (treasury), building of temples, religious offerings, and expenditures on theatrical shows and gladiatorial games, covering a period of about forty years. The scope of the accounting information at the emperor's disposal suggests that its purpose encompassed planning and decision-making.[6]

The Roman historians Suetonius and Cassius Dio record that in 23 BC, Augustus prepared a rationarium (account) which listed public revenues, and the amounts of cash in the aerarium (treasury), in the provincial fisci (tax officials), and in the hands of the publicani (public contractors); and that it included the names of the freedmen and slaves from whom a detailed account could be obtained. The closeness of this information to the executive authority of the emperor is attested by Tacitus' statement that it was written out by Augustus himself.[13]

Records of cash, commodities, and transactions were kept scrupulously by military personnel of the Roman army. An account of small cash sums received over a few days at the fort of Vindolanda circa AD 110 shows that the fort could compute revenues in cash on a daily basis, perhaps from sales of surplus supplies or goods manufactured in the camp, items dispensed to slaves such as cervesa (beer) and clavi caligares (nails for boots), as well as commodities bought by individual soldiers. The basic needs of the fort were met by a mixture of direct production, purchase and requisition; in one letter, a request for money to buy 5,000 modii (measures) of braces (a cereal used in brewing) shows that the fort bought provisions for a considerable number of people.[14]

The Heroninos Archive is the name given to a huge collection of papyrus documents, mostly letters, but also including a fair number of accounts, which come from Roman Egypt in the 3rd century AD. The bulk of the documents relate to the running of a large, private estate.[15] It is named after Heroninos because he was phrontistes (Koine Greek: manager) of the estate, which had a complex and standardised system of accounting which was followed by all its local farm managers.[16] Each administrator on each sub-division of the estate drew up his own little accounts, for the day-to-day running of the estate, payment of the workforce, production of crops, the sale of produce, the use of animals, and general expenditure on the staff. This information was then summarized on pieces of papyrus scroll into one big yearly account for each particular sub-division of the estate. Entries were arranged by sector, with cash expenses and gains extrapolated[extracted?] from all the different sectors. Accounts of this kind gave the owner the opportunity to take better economic decisions because the information was purposefully selected and arranged.[17]

Algebra balances and restores formulas on the left and right of an equal sign. Double-entry bookkeeping similarly balances and restores debit and credit totals around an equal sign. Accounting is the balancing and restoration of algebra applied to wealth accounting.[20]

In 756, the Abbasid caliph Al-Mansur sent scholars, merchants and mercenaries to support the Tang dynasty's Dukes of Li to thwart the An Shi Rebellion. The Abbasids and Tangs established an alliance, where the Abbasids were known as the Black-robed Arabs. The Tang dynasty's extensive conquests and polyglot court required new mathematics to manage a complex bureaucratic system of tithes, corvee labor and taxes. Abbasid scholars implemented their algebraic double-entry bookkeeping into operations of many of the Tang ministries. The Tang dynasty expanded their maritime presence across the Indian Ocean, Persian Gulf, and Red Sea, and up the Euphrates River.[21] On land they conquered much of what is today's China.

The Tangs were great innovators in the widespread use of paper for accounting books, and transaction documents. They developed the 8th-century Chinese printing techniques involving chiseling an entire page of text into a wood block backwards, applying ink, and printing pages by inventing early movable type, including characters chiseled in wood and the creation of ceramic print blocks. Tang science, culture, manners and clothing were widely imitated across Asia. Japan's traditional dress, as well as customs like sitting on the floor for meals, were borrowed from the Tangs. Imperial ministries adopted the Tang's double-entry bookkeeping for administration of taxes and expenditures. The Goryeo kingdom (the modern name "Korea" derives from Goryeo) donned the imperial yellow clothing of the Tangs, used the Three Departments and Six Ministries imperial system of the Tang dynasty and had its own "microtributary system" that included the Jurchen tribes of north China. The Tang's double-entry bookkeeping was essential to managing the complex bureaucracies surrounding Goryeo tribute and taxation.[22]

Later dispersion of knowledge of double-entry can be attributed to the rise of Genghis Khan and later his grandson Kublai Khan who were deeply influenced by the bureaucracy of the Tang dynasty. The accountants were the first to enter a city conquered by Mongols, tallying up the total wealth of the city, from which the Mongols took 10%, to be allocated between the troops. Cities were conquered, then encouraged to remain going-concerns. Double entry bookkeeping played an important role in assuring the Mongols were fully informed about taxes and expenditure.[22]

3a8082e126