ABSTRACT
Werner Sombart 1 was largely responsible for the broad thesis that systematic or scientific accounting, identified with the double-entry system, played an important part in releasing, activating, stimulating or accentuating the ‘rationalistic pursuit of unlimited profits’, an essential element in the capitalistic spirit. The main strands in this thesis may be set out as follows: by transforming assets into abstract values and by expressing quantitatively the results of business activities, double-entry bookkeeping clarified the aims of acquisitive business; moreover, it provided the rational basis on which the capitalist could choose the directions in which to employ his capital to best advantage; and finally, it made possible the separation of the business firm from its owners and hence the growth of large joint-stock businesses. 2 Sombart’s work gave prominence and prestige to the humble art of accounting by ascribing to it wide economic significance. 3
