Using Mathematics to Teach Accounting Principles

Abstract

As widely acknowledged, Luca Pacioli discussed accounting in his mathematics book Summa de Arithmetica, Geometria, Proportioni et Proportionalita. Using the perspective of mathematics, this paper shows that the majority of available accounting principles literature employs accounting equations positioning the elements of both assets and expenses in opposite accounting equations, rather than placing the two elements in the same side of the accounting equation. More than just offering consistent rationality, the use of mathematics rationality will make it much simpler to explain why the elements of assets and expenses should receive the same treatment in relation to debits and credits. Furthermore, this paper shows that the rules of debits and credits are entirely based on mathematical logics. Finally, this paper proposes the need for learning accounting from the perspective of mathematics, in addition to those of GAAP and engineering skills.