I’ve noticed that there are robust parallels amongst accounting and two critical areas of mathematics – the elementary algebra and the calculus. I suspect these reflect the origins of algebra in accounting and origins of some of the fundamental ideas behind the calculus in accounting. Readily offered references to the history of accounting and mathematics might be too scant to prove it, but I consider the parallels are very suggestive.
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For instance, assume a college student owns a car worth $10,000, a pc worth $1,000 and a Television worth $300. All three of these are home owned by the student which tends to make them assets. However, assume that the student borrowed funds to acquire the vehicle and still owes the bank $five,000 on the car loan which is a liability.
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