3. BARTER SYSTEM
People exchange goods and services for exchange of
goods and services.
During barter system record keeping was not
necessary
It was used long before when money was not used.
Barter system means to trade by exchange of
commodities rather than by the use of money.
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4. Wikipedia defines barter as a system of exchange
by which goods or services are directly exchanged
for other goods or services without using a medium
of exchange such as money.
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5. Industrial revolution of the 19th Century increased
commercial activities, mass production and credit
there for recording of transaction became important.
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6. ROLE OF THE ACCOUNTANT
From a mere financial record keeping an
accountant’s role has now evolved into providing
information to decision making team.
Accountants work these days include:
Forensic accounting (solving crimes like computer
hacking, and theft of large amounts of money in the
internet),
E-commerce –designing web-based payments
system,
Financial planning, and
Environmental accounts
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7. EVOLUTION OF THE ROLE OF AN ACCOUNTANT
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8. IMPORTANCE OF ACCOUNTING
To offer investment details;
To give the results of business transaction;
To give details of earning and expenses;
To give details of goods purchased or sold;
To give details of money receivables from customers;
To give details of money payable to suppliers; and
Nature and value of assets owned an liabilities in the
organization.
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