Accounting has been called the language of business and accountingstandards are grammar of this language. we must have a solidgrounding in its fundamentals. Accounting information has beenuseful for hundreds of years. The double-entry framework was firstdescribed in a book written by Luca Pacioli, a fifteenth-centuryItalian monk and mathematician, although its origins can be tracedback another 300 years. The formal structure for processing financialtransactions is at least 700 years old.
What is the definition of accounting? Accounting is the process ofproviding quantitative information about economic entities to aidusers in making decisions concerning the allocation of economicresources.
The term accounting theory is commonly used, but it has no unified,standardized definition. Very closely related to the realm ofaccounting theory is the area of measurement. Measurement isconcerned with the process of assigning numbers to the attributes orcharacteristics of the elements being measured.
In addition to accounting, accountancy has emerged as a profession,alongside the professions of medicine and law.