Accounting Case

Introduction

Accounting as we know it use based on the system of recording known as double entry book keeping. Although accounting did exist before double entry to be widely used, however its appearance has been used rapidly spread across the world. Today it is difficult to imagine accounting without it. It's been claim as the main essential of accounting. It has been so important that, to some extent, its appearance may be also viewed as the origins of modern accounting.

The terms modern, modernity and modernism are mean of characteristic or expressive of recent times or the present; contemporary or up-to-date: a modern lifestyle; a modern way of thinking [1]. In everyday use modern usually means up to date with recent developments, whether it be fashion, music, technology or ideas.

In business, modernity is viewed as having brought the radical changes in economics which resulted in industrialisation, specialisation and the greater and more creative use of capital resulting in the development of a system that promoted the effective use of capital-capitalism [2].

When we talk about economic and use of capital this will rule us to the modern accounting world. The continuously increasing scope and complexity of our economic system require a corresponding process of adaption in accounting in order that the relevant information regarding economic activities may be recorded. The field of accounting has increased greatly important and has seen many improvement in theory and techniques.

Accounting can be viewed in two ways [3]:

i) Accounting is a practical art attempting to record, classify, and summarise certain facts and events relating to business operations.

ii) Accounting is a theory of financial communication, founded on assumptions and containing logically derived