ACC 311 Lecture Notes - Lecture 3: Luca Pacioli, Double-Entry Bookkeeping System, Retained Earnings
12 Dec 2017
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Document Summary
The system of accounting we use today is known as double entry bookkeeping, and was introduced as early as 1494 by the italian mathematician luca pacioli, who was also the tutor to leonardo da vinci. Some historians boldly proclaim luca pacioli as the father of accounting, but this claim is likely overstated. Double entry bookkeeping was more likely developed in italy sometime after leonardo fibonocci introduced the arabic numeral system (and basic bookkeeping) into europe in 1202, but before pacioli wrote his textbook in 1494. The statement of cash flows is a required financial statement, but is derived from the. Balance sheet (chapter 5), and was not required until after 1988. The articulation of the financial statements we always prepare the income statement first, the statement of retained earnings second, and the balance sheet third. The following information is available from the records of landscape design inc. at the end of the 2016 calendar year:
