Changes

Accounting employs what is called "double entry bookkeeping", in which every transaction is entered as both a debit and credit.  Double entry bookkeeping accurately accounts for the relationship expressed in the basic accounting equation; Assets = Liabilities + Equity. This basic equation describes the "balance" between debits (assets) and credits (liabilities and equity).  The fundamental financial report is a "balance sheet". The word debit means "left" and the word credit means "right".  In general Assets (what you possess) have a debit balance and are listed on the left side of a balance sheet.  Liabilities (what you owe) and equity (what you own free of debt) have a credit balance and are listed on the right side of a balance sheet.  The first known description if this system was published in 1494 by a Franciscan monk named Luca Pacioli.<ref>Accounting Principles, 16th Edition, Phillip Fess, PhD, CPA & Carl S. Warren, PhD, CPA</ref>  Double entry bookkeeping was developed in Medieval Europe by a Franciscan friar, Luca Pacioli.<ref name=jkdiwan>{{cite book |last=Diwan |first=Jaswith |title=Accounting Concepts & Theories |publisher=Morre |location=London |id=id# 94452 |pages=001–002}}</ref>

Accounting employs what is called "double entry bookkeeping", in which every transaction is entered as both a debit and credit.  Double entry bookkeeping accurately accounts for the relationship expressed in the basic accounting equation; Assets = Liabilities + Equity. This basic equation describes the "balance" between debits (assets) and credits (liabilities and equity).  The fundamental financial report is a "balance sheet". The word debit means "left" and the word credit means "right".  In general Assets (what you possess) have a debit balance and are listed on the left side of a balance sheet.  Liabilities (what you owe) and equity (what you own free of debt) have a credit balance and are listed on the right side of a balance sheet.  The first known description if this system was published in 1494 by a Franciscan monk named Luca Pacioli.<ref>Accounting Principles, 16th Edition, Phillip Fess, PhD, CPA & Carl S. Warren, PhD, CPA</ref>  Double entry bookkeeping was developed in Medieval Europe by a Franciscan friar, Luca Pacioli.<ref name=jkdiwan>{{cite book |last=Diwan |first=Jaswith |title=Accounting Concepts & Theories |publisher=Morre |location=London |id=id# 94452 |pages=001–002}}</ref>

While accounting used to be done by hand, on paper, it is much more frequently done using computer programs today (for example [[LedgerLite]].)

While accounting used to be done by hand, on paper, it is much more frequently done using computer programs today.  Examples of software programs include [[LedgerLite]], QuickBooks, and for larger firms SAP and Deltek.

== See also ==

== See also ==