Acctng 1 - 1st Lecture PDF
Acctng 1 - 1st Lecture PDF
Acctng 1 - 1st Lecture PDF
ACCOUNTING
JULIET OZOA CABANLIT, CPA
Instructor
What is Accounting?
• The accounting function is to provide
quantitative information, primarily
financial in nature, about economic
entities, that is intended to be useful
in making economic decisions.
(Accounting Standards Council)
Quantitative
• Information that can be quantified(measured)
and expressed in numbers. (How Many?)
• It can be considered quantifiable only when it
has effects on the assets, liabilities and equity.
Financial in nature
• Refers to money or amounts (How much?)
• NOTE: Information should be both
quantitative and financial in nature.
Economic entities
• Any type of organization or unit in the society
• Examples: businesses, hospitals, schools,
government agencies, etc.
Cash is an asset. Since Mr. A bought the land, he paid cash for
it, which means that his cash will be decreased, that’s why it
is CREDITED.
Take note:
• Every journal entry should always have Debit
and Credit.
• When an asset is to be increased, it is debited.
• When an asset is decreased, it is credited.
This means that the balance of
Example 2: P350,000.00 is debt or accounts
payable.