Text 2 from the history of the double-entry system

Exercise 2.1

Study the vocabulary:

1	application	1	застосування
2	approach	2	підхід
3	to be closely associated	3	бути тісно зв'язаним
4	to come upon smth	4	прийти в голову
5	to claim	5	затверджувати
6	to formulate	6	створювати
7	figure	7	особа
8	genius	8	геній
9	incorrectness	9	неправильність
10	innovator	10	новатор
11	to identify with smth	11	ототожнювати з чим-небудь
12	mathematician	12	математик
13	measurement	13	вимірювання
14	origin	14	походження
15	precision	15	точність
16	popularize	16	поширювати

Exercise 2.2

Read and translate the text:

According to accounting historians there are several approaches to the origins of the double-entry system. The first and the most wide spread approach is that double-entry represents the work of a single genius. He is believed to be a prominent mathematician well-acquainted with trade. Some historians of accounting identify this genius with Luca Pacioli. He is the most famous man in the history of accounting. Luca Pacioli lived between 1445 and about 1513. He was a mathematician and worked at various universities in Italy. He knew the world of trade as well.

However the incorrectness of this point of view is easily demonstrated by Pacioli himself who wrote in his book he was describing Venetian practice as he found it. It is well-known that the practice was probably two centuries old when he wrote his famous «Summa».

Whether there was another genius with the necessary combination of learning and business knowledge who invented double-entry in the 13th century remains a mystery. Perhaps, there were several innovators who came upon the same idea independently. The practice is likely to have started in different parts of Italy at roughly the same time. Regional differences in the details of practice suggest independent development.

In accordance with another approach, the double-entry system is regarded as the application of science in the form of mathematics. In other words, double-entry is considered the application of scientific measurement in the world of trade. This approach is rather attractive and what is more important, it is strengthened by some historical facts. First of all, Luca Pacioli was closely associated with some leading figures of Renaissance in whose works the ideas of proportion and symmetry find their practical expression. In spite of the attractiveness of this approach one cannot claim that in the double-entry system the ideas of balance, symmetry and precision are central. Neither can we say that the development of double-entry represents the triumph of Renaissance – the search for simplicity.

The point is that in the ancient world much attention was given to details in accounting records. That is why ancient ledgers and records are so useful as source material for economic, social and business historians.

Records have been kept in different countries from very early times. But the system of accounting was formulated in Pacioli's book, published in 1494. This book had an immense influence on the spread of double-entry and did much to popularize it.

Exercise 2.3

Read the text again and chose the best variant:

1. Luca Pacioli is the prominent man…

1. in the history of management

2. in the history of accounting

2. Luca Pacioli was a famous…

1. economist

2. mathematician

3. The double-entry system is regarded as…

1. the application of science through the commerce

2. the application of science in the form of mathematics

4. Luca Pacioli was closely associated with…

1. leading figures of Middle Ages

2. leading figures of Renaissance

5. The most important features of double-entry system are…

a) precision, balance and symmetry

b) inaccuracy, asymmetry and imbalance

Exercise 2.4

Fill in the gaps from the table. Then read and translate:

prominent; practice; combination; several; incorrectness; double-entry; mystery; genius; details; various;

According to accounting historians there are …1… approaches to the origins of the double-entry system. The first and the most wide spread approach is that …2… represents the work of a single genius. He is believed to be a …3… mathematician well-acquainted with trade. Some historians of accounting identify this …4… with Luca Pacioli. He is the most famous man in the history of accounting. Luca Pacioli lived between 1445 and about 1513. He was a mathematician and worked at …5… universities in Italy. He knew the world of trade as well.

However the …6…of this point of view is easily demonstrated by Pacioli himself who wrote in his book he was describing Venetian …7…as he found it. It is well-known that the practice was probably two centuries old when he wrote his famous «Summa».

Whether there was another genius with the necessary …8…of learning and business knowledge who invented double-entry in the 13th century remains a …9….

Perhaps, there were several innovators who came upon the same idea independently. The practice is likely to have started in different parts of Italy at roughly the same time. Regional differences in the …10… of practice suggest independent development.

Exercise 2.5

Read the whole text again and chose the best answer:

1. Why do some historians of accounting identify the invention of the double-entry system with Luca Pacioli?

1. because he was the most famous man in the history of accounting

2. because he worked at various universities in Italy

2. Is it correct to say that Luca Pacioli invented the double-entry system?

1. yes, it is

2. no ,it is not

3. Where there any innovators who came upon the same idea independently?

1. there were not any innovators

2. there were several innovators from different parts of Italy at roughly the same time

4. What do regional differences in Italian accounting practices of 13^th century suggest?

1. they suggest measured and dependent development

2. they suggest independent development

5. What was given much attention to in accounting records?

1. ancient ledgers and records had not much attention given to details and were not useful as the source material for economic, social and business historians

2. much attention was given to details in accounting records

6. What was the influence of Pacioli’s book on the spread of double-entry system?

1. a minor influence

2. an immense influence