Once upon a time, long, long ago, accounting began to reduce events to numbers to capture and bring meaning to data and it was good. Concepts were agreed upon and accounting techniques evolved to analyze and resolve business issues. This article is about why concepts came first and are foundational to understanding accounting, especially managerial accounting.

This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.

Susan Crosson, Emory University

Read Why Accounting? Questions and The Evolution of Accounting Concepts.