Accounting: The "Language of Business"

Accounting: The "Language of Business"

Modern day accounting is as complex as a science, social science that is.   Accounting principles are used by practically everyone in business, as well as a majority of other fields.
Accounting has been growing and changing for a long time now, but where does the first trace of accounting really originate?   Historians believe that the birth of accounting took place possibly as early as the mid 1880’s, as an elaborate cost management scheme.   Fleishman (1991) believes that accounting could have been around much longer, stating   “British entrepreneurs of the Industrial Revolution would have developed sophisticated cost techniques much earlier, given their significant methodological advance in other economic areas” (p. 361).   There is every reason to believe that accounting was started well before the 1880’s, with “surviving business records of 25 sizeable British industrial firms from 1760 to 1850” being found (Fleishman, 1991, p. 361).
Accounting was stumbled upon by the British entrepreneurs, who wanted some means to keep track of the money coming in and out of their business.   With upwards of 25 British firms in the textile and iron industry, the businesses could not afford to lose money doing business or they would be out of work (Fleishman, 1991, para. 2)   The British, because of the competition, developed “cost control techniques, accounting for overhead, costing for routine and special decision making, and standard costing” (Fleishman, 1991, p. 361).
Social science differs from physical science immensely.   In The World Book Encyclopedia Dictionary, social science is defined as “the study of people, their activities, and their customs in relationship to others” (Barnhart, 1963, p. 1847). Physical science is defined as “physics, chemistry, geology, astronomy, and other sciences dealing with inanimate matter” (Barnhart, 1963, p. 1847).   As one can see the difference between the two sciences is easy to tell.   Social science does not...