Does anyone answering here know any accounting or are people just guessing? I pulled out an accounting text I keep as a reference and looked up double entry and single entry and they weren't there.
My understanding is that the "the invention of double entry accounting" refers to the invention of the balance sheet. My vague memory on this is that prior to that invention all people had in the way of accounting was ledgers showing transactions and rather haphazard listings of firm's assets and liabilities. If my memory serves me here the invention of the balance sheet allowed quick and easy insight into the book value of the firm which was not a well defined concept before this. Those who are familiar with accounting principles will recognize this as a big change. You could say that the invention of the balance sheet is the beginning of modern accounting. You could go further and say that there is virtually no useful accounting without the balance sheet and that nearly every other modern accounting concept (income statements and cash flow) are linked to the balance sheet. - - Bill
