Question

list the key historical events that have shaped the accounting profession so far. for each event, briefly explain how that event affected the practice if accounting

Answer 1

Answer - Some of the key historical points are -

1. Foreign direct investment by public and private sector companies.

2.The industrial revolution and the rise of large-scale limited liability companies to pool resources for the massive investments necessary for the mass production of products.

3.The rise of the city states in Italy and the need to account for public finances.

4.The rise in international trade and the need to account for transactions crossing national borders.