Luca Pacioli 123

Discover the Roots of Accounting & Learn Through Real-World Scenarios

Why Luca Pacioli is the "Father of Accounting"

Portrait of Luca Pacioli

Luca Pacioli, a 15th-century Italian mathematician and Franciscan friar, is known as the "Father of Accounting" because he authored the first book that comprehensively described the double-entry bookkeeping system, titled Summa de Arithmetica, Geometria, Proportioni et Proportionalita (1494).

Student-Friendly Accounting Dictionary

Asset
Resources owned by a business.
Example: Cash, Equipment, Accounts Receivable.
Liability
Obligations or debts owed to others.
Example: Loans Payable, Accounts Payable.
Revenue
Income earned from normal business operations.
Example: Sales of products or services.
Expense
Costs incurred to earn revenue.
Example: Rent, Salaries, Utilities.
Equity
The owner's residual interest in the assets after deducting liabilities.
Example: Owner's Capital, Retained Earnings.
Journal Entry
A record of a financial transaction.
Example: Debit Cash $500 / Credit Service Revenue $500.

Real Accounting Scenarios for Practice

Scenario 1: Debit Cash $10,000 / Credit Notes Payable $10,000

Scenario 2: Debit Equipment $600 / Credit Cash $600

Scenario 3: Debit Accounts Receivable $1,500 / Credit Service Revenue $1,500

Student Resources

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Educational Resource Center for Accounting Students!

Bookkeeper

Maintains daily financial records including ledgers and journals.

Accountant

Prepares financial statements and ensures compliance with regulations.

Cost Accountant

Analyzes manufacturing costs to improve efficiency and profitability.

Fixed Asset Accountant

Tracks long-term assets, depreciation, and asset reconciliation.

Revenue Accountant

Ensures revenue recognition aligns with GAAP or IFRS standards.

Payroll Specialist

Manages employee compensation, taxes, and benefits reporting.

Accounts Payable Specialist

Processes and records vendor invoices and outgoing payments.

Accounts Receivable Specialist

Manages incoming payments, invoicing, and collections.

Senior Accountant

Oversees financial reports, reconciliations, and junior staff work.

Financial Planning & Analyst

Forecasts budgets, monitors performance, and advises on decisions.

Budget Accountant

Prepares and monitors organizational budgets and controls.

Accounting Manager

Supervises the accounting department and ensures reporting deadlines.

AP Manager

Leads accounts payable operations and vendor relationships.

AR Manager

Manages receivables and ensures accurate customer account records.

PR Manager

Oversees payroll operations and ensures legal compliance.

Internal Auditor

Reviews internal processes, risks, and compliance effectiveness.

Assistant Controller

Supports Controller with reports, reconciliations, and audits.

Controller

Manages all accounting activities and prepares financial reports.

Chief Financial Officer (CFO)

Leads financial strategy, planning, and investor communications.

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Thank you,
Salvador Soto Jr, MSA