Notable quotes about accounting: Difference between revisions

 

{{Section separator}}

| {{Quote

| text = “Double-entry bookkeeping… is one of the finest inventions of the human mind, and every prudent master of a house should introduce it into his economy.”<ref>{{cite web |title=Second Luca Pacioli Lecture |url=https://www.ecb.europa.eu/press/key/date/2007/html/sp071114.en.html |website=European Central Bank |publisher=European Central Bank |date=2007 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “Accounting is the preparation and generation of information and the aggregation of that information in a way that’s useful in decision-making.”<ref>{{cite web |title=Learning to Use Financial Accounting Numbers Strategically |url=https://globalyouth.wharton.upenn.edu/articles/business/learning-to-use-financial-accounting-numbers-strategically/ |website=Wharton Global Youth Program |publisher=Wharton School, University of Pennsylvania |date=2014 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “If you’re interested in business, I definitely think you ought to learn all the accounting you can by the time you’re in your early 20s. Accounting is the language of business.”<ref>{{cite web |title=1998 Berkshire Hathaway Annual Meeting Transcript |url=https://www.cnbc.com/1998/05/04/berkshire-hathaway-annual-meeting-1998.html |website=CNBC Buffett Archive |publisher=CNBC |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = People are accustomed to thinking of accounting as dry and boring, a necessary evil used primarily to prepare financial reports and survive audits, but that is because accounting is something that has become taken for granted.<ref>{{cite book |last=Ries |first=Eric |title=The Startup Way |publisher=Crown |date=2017}}</ref>

}}

}}

| {{Quote

| text = It sounds extraordinary, but it’s a fact that balance sheets can make fascinating reading.<ref>{{cite web |title=10 Funny and Inspirational Quotes for Accountants |url=https://www.btpartners.com/technology-blogs/10-funny-and-inspirational-quotes-for-accountants |website=BT Partners |date=2020-05-05 |access-date=2025-12-26}}</ref>

}}

}}

| {{Quote

| text = “To be good at your business, you have to know the numbers—cold.”<ref>{{cite book |author=Donald E. Kieso; Jerry J. Weygandt; Paul D. Kimmel |title=Financial Accounting |publisher=Wiley |edition=6th |date=2005 |pages=Preface}}</ref>

}}

}}

| {{Quote

| text = “Obviously, you have to know accounting. It’s the language of practical business life. It was a very useful thing to deliver to civilization… double-entry bookkeeping was a hell of an invention… although accounting is the starting place, it’s only a crude approximation.”<ref>{{cite web |title=A Lesson on Elementary, Worldly Wisdom |url=https://ritholtz.com/2014/09/charles-mungers-speech-at-usc-business-school-1994/ |website=The Big Picture |publisher=Ritholtz Wealth Management |date=1994 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “The books cannot be closed unless the debits equal the credits; when the debit and credit have been separately summed, the two sums shall be equal.”<ref>{{cite book |author=Luca Pacioli |title=Paciolo on Accounting |translator=W. W. Cooper and Yuji Ijiri |publisher=Richard D. Irwin |date=1963 |pages=175}}</ref>

}}

}}

| {{Quote

| text = The word accounting comes from the word accountability. If you are going to be rich, you need to be accountable for your money.<ref>{{cite web |title=Accounts Payable Quotes: Advice, Sayings, and Accounting Knowledge from the Experts |url=https://www.netsuite.com/portal/resource/articles/accounting/accounts-payable-quotes.shtml |website=NetSuite |publisher=Oracle Corp. |date=2020-11-20 |author=Bridget McCrea |access-date=2025-12-26}}</ref>

}}

}}

| {{Quote

| text = “Tell me how you will measure me, and I will tell you how I behave. If you measure me in an illogical way… do not complain about illogical behavior.”<ref>{{cite book |author=Eliyahu M. Goldratt |title=The Haystack Syndrome: Sifting Information Out of the Data Ocean |publisher=North River Press |date=1990 |pages=Chapter 8}}</ref>

}}

}}

| {{Quote

| text = Capital isn’t this pile of money sitting somewhere; it’s an accounting construct.<ref>{{cite news |title=Why Warren Buffett Is Hiding $61 Billion in Plain Sight |url=https://www.fool.com/investing/general/2014/07/20/according-to-warren-buffett-accounting-numbers-are.aspx |work=The Motley Fool |date=2014-07-20 |author=John Maxfield |access-date=2025-12-26}}</ref>

}}

}}

| {{Quote

| text = “Managers and investors must recognize that accounting numbers are the beginning, not the end, of business valuation.”<ref>{{cite web |title=Berkshire Hathaway Inc. 1982 Annual Shareholder Letter |url=https://www.berkshirehathaway.com/letters/1982.html |website=BerkshireHathaway.com |publisher=Berkshire Hathaway |date=1983 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = You have to understand accounting and you have to understand the nuances of accounting. It’s the language of business and it’s an imperfect language, but unless you are willing to put in the effort to learn accounting – how to read and interpret financial statements – you really shouldn’t select stocks yourself.<ref>{{cite book |last=Buffett |first=Mary |title=Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage |publisher=Scribner |date=2008}}</ref>

}}

}}

| {{Quote

| text = “Carl Braun did not know how to read a profit-and-loss statement or a balance sheet to save his life. He would say, ‘Our standard accounting method is asinine. We’re building oil refineries, for God’s sake. Accounting costs for all our corrosion costs as if they were an ordinary cost like office supplies. That’s crazy. We must integrate corrosion costs right into the balance sheet.’”<ref>{{cite web |title=A Lesson on Elementary, Worldly Wisdom |url=https://ritholtz.com/2014/09/charles-mungers-speech-at-usc-business-school-1994/ |website=The Big Picture |publisher=Ritholtz Wealth Management |date=1994 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = To be successful, you should concentrate on the world of companies, not arcane accounting mathematics.<ref>{{cite web |title=The world’s best investors offer a secret on how to outperform the market in the long-run |url=https://www.valens-research.com/investor-essentials-daily/upld-upland-software-worlds-best-investors-offer-secret-outperform-market-long-run/ |website=Valens Research |date=2021-10-26 |access-date=2025-12-26}}</ref>

}}

}}

| {{Quote

| text = “Proper accounting is like engineering. You need a margin of safety. Thank God we don’t design bridges and airplanes the way we do accounting.”<ref>{{cite web |title=Chatting With Charlie: The Mark Twain of Finance |url=https://law.stanford.edu/stanford-lawyer/articles/chatting-with-charlie-the-mark-twain-of-finance/ |website=Stanford Lawyer |publisher=Stanford Law School |date=2003 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = It has been my experience that competency in mathematics, both in numerical manipulation and in understanding its conceptual foundations, enhances a person’s ability to handle the more ambiguous and qualitative relationships that dominate our day-to-day financial decision-making.<ref>{{cite web |title=Financial education |url=https://www.federalreserve.gov/boarddocs/speeches/2003/20030403/default.htm |website=Board of Governors of the Federal Reserve System |publisher=Federal Reserve |date=2003-04-03 |author=Alan Greenspan |access-date=2025-12-26}}</ref>

}}

}}

| {{Quote

| text = I thought I could start over, you see. But now I know you can never start over. Not really. You think you have control, but you are like a fly in somebody else's web. Sometimes I think that's why I like accounting. All day, you are only dealing with numbers. You add them, multiply them, and if you are careful, you will always have a solution. There's a sequence there. An order. With numbers, you can have control.<ref>{{cite book |last=Obama |first=Barack |title=Dreams from My Father: A Story of Race and Inheritance |publisher=Times Books |date=1995}}</ref>

}}

}}

| {{Quote

| text = Life is like accounting, everything must be balanced.<ref>no primary source; widely attributed to Gail Godwin on quotes sites</ref>

}}

}}

| {{Quote

| text = Managers thinking about accounting issues should never forget one of Abraham Lincoln's favorite riddles: How many legs does a dog have, if you call a tail a leg? The answer: Four, because calling a tail a leg doesn't make it a leg.<ref>{{cite web |title=Warren Buffett Says This 1 Simple Habit Is the Key to Success. Here Are 19 Times He Did It in Public |url=https://www.inc.com/bill-murphy-jr/warren-buffett-says-this-1-simple-habit-is-key-to-success-here-are-19-times-he-did-it-in-public.html |author=Bill Murphy Jr. |date=2020-02-14 |website=Inc. |access-date=2025-12-26}}</ref>

}}

}}

| {{Quote

| text = “We must not let pressures to satisfy Wall Street expectations or unrealistic demands to deliver a certain quarterly earnings result lead us to compromise the quality of our accounting and financial reporting. We must adhere to the highest quality standards.”<ref>{{cite web |title=A Partnership for the Public Trust |url=https://www.sec.gov/news/speech/1998/1998-89 |website=U.S. Securities and Exchange Commission |publisher=SEC |date=1998-09-28 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “History, common sense and experience tell us that at the heart of our markets are faith and trust in the honesty of corporate financial records. One who weakens that trust without good cause does no one a service.”<ref>{{cite web |title=A Partnership for the Public Trust |url=https://www.sec.gov/news/speech/1998/1998-89 |website=U.S. Securities and Exchange Commission |publisher=SEC |date=1998-09-28 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = In the long run, management stressing accounting appearance over economic substance usually achieves little of either.<ref>{{cite web |title=Chairman's Letter - 1981 |url=https://www.berkshirehathaway.com/letters/1981.html |publisher=Berkshire Hathaway Inc. |date=1982-02-26 |access-date=2025-12-31}}</ref>

}}

}}

| {{Quote

| text = “When any cunning man keeps two books, one with honest entries and the other with false, he hides the truth, and you cannot rely on it; therefore be careful to keep your books with truth and integrity.”<ref>{{cite book |author=Luca Pacioli |title=Paciolo on Accounting |translator=W. W. Cooper and Yuji Ijiri |publisher=Richard D. Irwin |date=1963 |pages=12}}</ref>

}}

}}

| {{Quote

| text = “When accounting practices are defined more by gimmickry than by their representation of underlying business conditions, public trust is jeopardized.”<ref>{{cite web |title=A Partnership for the Public Trust |url=https://www.sec.gov/news/speech/1998/1998-89 |website=U.S. Securities and Exchange Commission |publisher=SEC |date=1998-09-28 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “Creative accounting is an absolute curse to a civilization. One could argue that double-entry bookkeeping was one of history’s great advances. Using accounting for fraud and folly is a disgrace. In a democracy, it often takes a scandal to trigger reform. Enron was the most obvious example of a business culture gone wrong in a long, long time.”<ref>{{cite book |last=Munger |first=Charles T. |title=Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger |publisher=Donning Company Pub. |date=2008}}</ref>

}}

}}

| {{Quote

| text = “We must guard the integrity of the process. In doing so we will strengthen investor confidence, achieve a higher quality of financial reporting and serve the best interests of our Nation.”<ref>{{cite web |title=A Partnership for the Public Trust |url=https://www.sec.gov/news/speech/1998/1998-89 |website=U.S. Securities and Exchange Commission |publisher=SEC |date=1998-09-28 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “I think Enron is the first shoe to drop. There’s a kind of Gresham’s law, where bad conduct drives out good conduct.”<ref>{{cite web |title=Chatting With Charlie: The Mark Twain of Finance |url=https://law.stanford.edu/stanford-lawyer/articles/chatting-with-charlie-the-mark-twain-of-finance/ |website=Stanford Lawyer |publisher=Stanford Law School |date=2003 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “In insurance, as elsewhere, the reaction of weak managements to weak operations is often weak accounting.”<ref>{{cite web |title=Berkshire Hathaway Inc. 1982 Annual Shareholder Letter |url=https://www.berkshirehathaway.com/letters/1982.html |website=BerkshireHathaway.com |publisher=Berkshire Hathaway |date=1983 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = “No CEO examining books today understands what the hell is going on… Accounting has steadily degraded over the past 30 years, and accounting firms have sold out time after time.”<ref>{{cite web |title=Chatting With Charlie: The Mark Twain of Finance |url=https://law.stanford.edu/stanford-lawyer/articles/chatting-with-charlie-the-mark-twain-of-finance/ |website=Stanford Lawyer |publisher=Stanford Law School |date=2003 |access-date=2025-12-30}}</ref>

}}

}}

| {{Quote

| text = Creativity is great but not in accounting.<ref>{{cite web |title=Rule 34: Be a brown rat if you want to succeed |url=https://www.davidsonwp.com/blog/2016/03/rule-34-be-a-brown-rat-if-you-want-to-succeed |website=Davidson WP |publisher=Davidson WP |access-date=2025-12-31 |date=March 2016 |author=Andrew Davidson}}</ref>

}}

}}

| {{Quote

| text = I would argue that a majority of the horrors we face would not have happened if the accounting profession developed and enforced better accounting.<ref>{{cite news |title=Munger on the 'Asininities' of Today's Regulators and Business Leaders |url=https://www.theatlantic.com/business/archive/2009/05/munger-on-the-asininities-of-todays-regulators-and-business-leaders/17894/ |work=The Atlantic |date=2009-05-20 |author=J.J. Gould |access-date=2025-12-26}}</ref>

}}

}}

{{Section separator}}

{{references}}