Page 451 - Introduction to Business

CHAPTER 12 Financial Reporting 425

Technology and Business

Timeline of Major Events Regarding
Accounting and Information Processing

1455 Johann Gutenberg invents movable type. 1980s Widespread use of microcomputers,
1494 Luca Pacioli writes first book on double- particularly for word processing and
entry accounting. spreadsheet applications, occurs.
1629 Appointment of auditors to examine the 1984 Internet host computers exceed 1000.
accounts of Massachusetts Bay Colony. 1990s Advancements in hardware and software
1700s Accountants trained through made. The PC is helpful in virtually every
apprenticeships in counting houses. accounting task, from financial analysis to
1790s New York Stock Exchange established. audit examinations to tax research to
1830s Charles Babbage develops analytic engine, communications.
the forerunner of the electronic computer. 1991 Tim Berners-Lee, working at CERN in
1883 First college accounting course offered at Geneva, develops a hypertext system to
the University of Pennsylvania. provide efficient information access. He
1887 American Association of Public posts the first computer code of the World
Accountants formed. Wide Web in a relatively innocuous
1896 New York is first state to pass CPA newsgroup, alt.hypertext.
legislation. 1994 Pizza Hut sells pizza on its website.
1919 National Association of Cost Accountants First Virtual, the first cyberbank, is opened.
formed. 1997 Business-to-business (B2B) e-commerce
1930s Securities Acts of 1933 and 1934 require begins.
filing and public disclosure of audited 1999 Most large corporations provide financial
financial statements to the SEC. reports on the Web, referred to as Internet
1940 Institute of Internal Auditors formed. financial disclosure or electronic financial
1946 The first electronic computer, ENIAC, is reporting.
constructed at the University of 2003 Internet host computers, computers with
Pennsylvania. a registered IP address, exceed 150
1958 In response to Soviet technological million. Users in over 150 countries are
advances, the United States forms the connected.
Advanced Research Projects Agency 2004 Tim Berners-Lee knighted by Queen
(ARPA), with the Department of Defense, to Elizabeth for contributions to Internet
develop U.S. prominence in science and development, specifically for inventing the
technology applicable to the military. World Wide Web.
1969 ARPANET, the forerunner of the Internet,
established with four nodes: UCLA, Questions
Stanford, UC–Santa Barbara, and 1. Considering the major historical events affecting
University of Utah. accounting and information processing, which
1970 First applications of electronic data one or two would you consider the most pro-
interchange (EDI) made. found?
1973 Financial Accounting Standards Board 2. The use of the Web has revolutionized business.
(FASB) established. With what firms have you done e-business?
International Accounting Standards 3. With what firms would you like to do e-business if
Committee (IASC) established. they had an e-business website?

“undiscovered country.” What will the undiscovered country of accounting and
information processing look like? Just a few decades ago, could anyone have pre-
dicted the impact of the Web on business and e-commerce?
Improvements will continue to be made in basic computer applications such as
spreadsheet, database, word processing, and communication software. Microcomputer

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