Research on verbal accounting examines how language is used to retrospectively explain or make sense of events. Citing one’s motive or describing the context may serve to portray events in a different way – as understandable, excusable, or less culpable. An accounting can range from a lengthy discourse (a narrative or courtroom cross-examination) to a
Accounting Career Background Even before the introduction of the first coins in about 600 BC, farmers kept track of their livestock and other valuable possessions in order to have an accurate financial record. Having 16 sheep, for example, meant the ability to trade up to 16 sheep for something else of equal value. The farmer
Mental Accounting Definition Mental accounting is a theory that describes how people think about money. This theory suggests that people track and coordinate their financial activities by partitioning money into mental accounts, which are used to make spending decisions. Examples of mental accounts might include an “entertainment account” or an “education account,” each representing money