FABM-LESSON-1-4-Introduction.pptxvuujioi

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1. FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT Teacher: Mr. Paulo G. Escuadro

2. SCRAMBLE LETTERS

3. 1 . I I A A N N L F C FINANCIAL

4. 2 . S S A E T ASSET

5. 3 . L A U R 0 N J JOURNAL

6. 4 . C A A O I N N T T R S TRANSACTION

7. 5. G O T A U I N N C C ACCOUNTING

8. 6 . E O I R R C D G N RECORDING

9. 7 . A A I L C P T CAPITAL

10. 8 . Y I I I A L L T B LIABILITY

11. 9 . Y I I I E N N D T F G IDENTIFYING

12. 10. N U I B E S S S BUSINESS

13. FINANCIAL ASSET JOURNAL TRANSACTION ACCOUNTING RECORDING CAPITAL LIABILITY IDENTIFYING BUSINESS CORRECT ANSWERS

14. FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT (Lesson 1-4) Teacher: Mr. Paulo G. Escuadro

15. Learning Competencies Define accounting Describe the nature of accounting Explain the functions of accounting in business Narrate the history / origin of accounting

16. What knowledge is required in the study of Accounting Firstly, it is your analytical ability that counts most. Secondly, it is your stored knowledge in arithmetic and not mathematics that are needed. Thirdly, there is a psychological factor behind. Lastly, change a little your study habit. An accountant must be a USA made. He must have the U nderstanding, S peed and A ccuracy.

17. Why do we need to study Accounting?

18. Why do we need to study Accounting? People in all walks of life, be it a professional or non-professional are living in an era of accountability . We have to pay our income taxes, house rentals, tuition fees for our children, telephone and lights bills, salaries for our house helpers and many others.

19. Why do we need to study Accounting? We forgot that all of these things we do deals with accounting. Therefore, it is not a reason that only accountants should study accounting but the non-accountants as well especially they occupy the biggest portion of our society.

20. ACCOUNTING Define as the art of recording , classifying and summarizing in a significant manner and in terms of money, transaction and events which are, in part at least of financial character and interpreting the result thereof. According to American Institute of Certified Public Accountant (AICPA)

21. ACCOUNTING Is the process of IDENTIFYING , RECORDING and COMMUNICATING economic events of an organization to interested users.

22. ACCOUNTING IDENTIFYING this involves selecting economic events that are relevant to a particular business transactions. Bakery Business Example of an Economic event: Sales of bread and other bakery products Purchase of flour that will be used for baking Purchases of trucks needed to deliver products

23. ACCOUNTING IDENTIFYING this involves selecting economic events that are relevant to a particular business transactions. Business Transactions takes place once a business ventures starts operations. These are the interactions between business and other stakeholders. It must be identified, measured and documented through an accounting process.

24. ACCOUNTING RECORDING listing down of accountable events. Accounting records transactions in the accounting journals which is chronologically lists transactions and events that affect the business . Journal is often called the book of original entry.

25. ACCOUNTING COMMUNICATING or reporting the results to users of financial information. This involves the preparation of accounting reports called Financial Statement which is submitted or made available to users of financial information for their decision making.

26. Types of Financial Statements 1. Balance Sheet / Statement of Financial Position – it shows a list of the resources, debts and capital of enterprise as of date of reporting Resources = Asset Debts = Liability Capital = Owner’s Equity

27. Types of Financial Statements 2. Income Statement/Statement of Comprehensive Income – It shows the income, expensive and net result of operations over a period of time up to the date of reporting.

28. Types of Financial Statements 3 . Statement of cash flows – It shows the changes in the cash position: Cash inflows and outflows of the enterprise for the period. 4. Statement of Change in Equity – shows a summary in change in capital of the enterprise during the period

29. Types of Financial Statesments 5. Notes on the Financial Statements – It shows additional disclosure of certain information which are useful to users of the financial statements in understanding the information in the financial statement.

30. NATURE OF ACCOUNTING (Lesson 2)

31. Nature of Accounting The basic features of accounting are as follows 1. Accounting is a service activity : Accounting provides assistance to decision makers by providing them financial reports that will guide them in coming up with sound decisions. 2. Accounting is a process: A process refers to the method of performing any specific job steps by step according to the objectives of target.

32. Nature of Accounting The basic features of accounting are as follows 3. Accounting is both an art and a discipline: accounting is the art of recording, classifying, summarizing and finalizing financial data. 4. Accounting deals with financial information and transaction: accounting records financial transactions and data, classifies these and finalizes their results given for a specified period of time, as needed by their users

33. Nature of Accounting The basic features of accounting are as follows 5 . Accounting is an information system: Accounting is recognized and characterized as a storehouse of information. As a service functions, it collects processes and communicates financial information of any entity.

34. FUNCTIONS OF ACCOUNTING IN BUSINESS (Lesson 3)

35. The language of business. It serves as a means of communication between business and interested users either internal and external. Function of Accounting in Business

36. Function of Accounting in Business It can be attributed to the three fundamental objective of an information system that performs the following task. To fulfill the stewardship function of the management or the owners. To help interested users to come up with informed decisions To support daily operations of the business

37. What is the difference between the ACCOUNTING and the BOOKKEEPING?

38. What is the difference between the ACCOUNTING and the BOOKKEEPING? Accounting is broader as it. Includes the bookkeeping function. Bookkeeping is just confined with the recording of monetary transaction which is part of the accounting process Is responsible to records business transaction.

39. HISTORY OF ACCOUNTING (Lesson 4)

40. LUCA PACIOLI The father of ACCOUNTING The founder of double entry-bookkeeping. The debit and credit

41. ANSWER ME 1. It is a report that shows a list of the resources, debts and capital of enterprise as of date of reporting.

42. ANSWER ME 2. Is the process of IDENTIFYING, RECORDING and COMMUNICATING economic events of an organization to interested users.

43. ANSWER ME 3 . The founder of double entry-bookkeeping and the father or accounting.

44. ANSWER ME 4. It is responsible to records business transaction.

45. ANSWER ME 5. These are the interactions between business and other stakeholders.

46. ANSWER ME 6 . It is a report that shows the income, expensive and net result of operations over a period of time up to the date of reporting.

47. ANSWER ME 7 . Other term for accounting reports.

48. ANSWER ME 8. “USA” stands for?

49. ANSWER ME 9 . It is a report that shows the changes in the cash position: Cash inflows and outflows of the enterprise for the period.

50. ANSWER ME 10. “AICPA” stands for?