F) Tax Accounting
UNIT 1
○ prepares tax returns &
HISTORY OF ACCOUNTING ○ advice company tax a
1) Ancient Mesopotamia ● Tax Compliance
○ 7000 yrs ago ○ preparing &
○ to keep track of crops and herd growth ● Tax Planning
○ Clay tablets, pictographic forms ○ giving advic
○ Financial institutions = temples (act as distribution system for to reduce tax
assets) G) Accounting Education
2) Roman Empire ○ accounting for academ
○ Taxation and law implement H) Accounting Information Sy
○ Adversaria: records of expenses of family ○ system to collect, sto
● Caesar had control of treasury and state financial data
3) Renaissance/ Age of Discovery ○ used by various intern
○ International trade flourished I) Forensic Accounting
○ docks kept records documenting length of journey, cargo ○ legal affairs
quantity ○ such as inquiry into
○ Servants to track assets and liabilities after trip resolution
○ Single Entry bookkeeping system: narratively organized in
single column if goods are paid/owed/sold USERS OF ACCOUNTING INFOR
3.1) Luca Pacioli Primary users
○ Published “Summa De Arithmetica” A) Investors (Owners, Ind
○ Widespread of Double Entry Accounting companies)
4) Industrial Revolution ○ Existing investors- ch
○ Keep up with competition-> structure cost of goods ○ Potential investors- a
5) Modern Day B) Lenders and other creditor
○ Double entry accounting: 2 ways of every exchange, debits and ○ Lenders (capable rep
credits. credit)
○ Corporations- manager report to owner, creating acct system Other users
○ Government- income tax A) Internal users
○ Globalization- use of technology to track transactions, software ○ Owner (monitor per
programs make decisions), Emp
B) External users
DEFINITIONS ○ Tax authorities (get t
Accounting company check frau
○ Definition: recording, classifying and summarizing financial increase), Trade A
events, and interpreting the results thereof Financial Intermedia
○ Nature: art, visualize what’ll happen/interpretable, service Mutual fund compani
engaged in providing info
○ Scope: financial information and transactions FORMS OF BUSINESS ORGANIZ
○ Language of business (because accounting is used to By Ownership
communicate financial information) A) Sole proprietorship
○ Encompasses bookkeeping ○ by an individual
Bookkeeping ○ 1 owner
○ Deals mainly with the accurate recording of financial ○ ends when owner die
transactions and preparation of financial statements ○ unlimited liability (sol
○ No interpretation B) Partnership
○ partners who enter in
AREAS profits amongst them
A) Public Accounting ○ *can be for exercise o
○ providing accounting services for other companies ○ 2 or more
○ Auditing, Tax Accounting & ○ termination, particula
○ Management advisory services- helping clients improve of any partner/ deat
information system & business performance court
B) Private Accounting ○ individually & jointly
○ for single business entity in specific industry C) Corporation
C) Governmental Accounting ○ separate legal entity
○ for government/‘s departments/ units ○ 1 or more stockholde
○ bankrupt/ liquidate/ p
BRANCHES die just because owne
A) Financial Accounting ○ liability limited to am
UNIT 1
○ prepares tax returns &
HISTORY OF ACCOUNTING ○ advice company tax a
1) Ancient Mesopotamia ● Tax Compliance
○ 7000 yrs ago ○ preparing &
○ to keep track of crops and herd growth ● Tax Planning
○ Clay tablets, pictographic forms ○ giving advic
○ Financial institutions = temples (act as distribution system for to reduce tax
assets) G) Accounting Education
2) Roman Empire ○ accounting for academ
○ Taxation and law implement H) Accounting Information Sy
○ Adversaria: records of expenses of family ○ system to collect, sto
● Caesar had control of treasury and state financial data
3) Renaissance/ Age of Discovery ○ used by various intern
○ International trade flourished I) Forensic Accounting
○ docks kept records documenting length of journey, cargo ○ legal affairs
quantity ○ such as inquiry into
○ Servants to track assets and liabilities after trip resolution
○ Single Entry bookkeeping system: narratively organized in
single column if goods are paid/owed/sold USERS OF ACCOUNTING INFOR
3.1) Luca Pacioli Primary users
○ Published “Summa De Arithmetica” A) Investors (Owners, Ind
○ Widespread of Double Entry Accounting companies)
4) Industrial Revolution ○ Existing investors- ch
○ Keep up with competition-> structure cost of goods ○ Potential investors- a
5) Modern Day B) Lenders and other creditor
○ Double entry accounting: 2 ways of every exchange, debits and ○ Lenders (capable rep
credits. credit)
○ Corporations- manager report to owner, creating acct system Other users
○ Government- income tax A) Internal users
○ Globalization- use of technology to track transactions, software ○ Owner (monitor per
programs make decisions), Emp
B) External users
DEFINITIONS ○ Tax authorities (get t
Accounting company check frau
○ Definition: recording, classifying and summarizing financial increase), Trade A
events, and interpreting the results thereof Financial Intermedia
○ Nature: art, visualize what’ll happen/interpretable, service Mutual fund compani
engaged in providing info
○ Scope: financial information and transactions FORMS OF BUSINESS ORGANIZ
○ Language of business (because accounting is used to By Ownership
communicate financial information) A) Sole proprietorship
○ Encompasses bookkeeping ○ by an individual
Bookkeeping ○ 1 owner
○ Deals mainly with the accurate recording of financial ○ ends when owner die
transactions and preparation of financial statements ○ unlimited liability (sol
○ No interpretation B) Partnership
○ partners who enter in
AREAS profits amongst them
A) Public Accounting ○ *can be for exercise o
○ providing accounting services for other companies ○ 2 or more
○ Auditing, Tax Accounting & ○ termination, particula
○ Management advisory services- helping clients improve of any partner/ deat
information system & business performance court
B) Private Accounting ○ individually & jointly
○ for single business entity in specific industry C) Corporation
C) Governmental Accounting ○ separate legal entity
○ for government/‘s departments/ units ○ 1 or more stockholde
○ bankrupt/ liquidate/ p
BRANCHES die just because owne
A) Financial Accounting ○ liability limited to am
