Fundamentals of Accountancy, Business and Management 1 (FABM1)

Fundamentals of SENIOR
Accountancy, Business HIGH

and Management 1 (FABM1) SCHOOL
Internal Users Self-Learning

Module
and their 5
Accounting Information Needs Quarter 3
Fundamentals of Accountancy, Business and Management 1
Quarter 3 – Self-Learning Module 5: Internal Users and their Accounting
Information Needs
First Edition, 2020
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Published by the Department of Education - Schools Division of Pasig City
Development Team of the Self-Learning Module

Writer: Hedelita B. Calonia
Editor: Dr. Edna D. Camarao
Reviewers:
Content/Language: Jennifer M. Hobrero, Emmanuel B. Penetrante
Technical: Emmanuel B. Penetrante
Illustrator: Name
Layout Artist: Name
Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
Aurelio G. Alfonso EdD
OIC-Assistant Schools Division Superintendent
Victor M. Javeña EdD
Chief, School Governance and Operations Division and
OIC-Chief, Curriculum Implementation Division
Education Program Supervisors
Librada L. Agon EdD (EPP/TLE/TVL/TVE)

Liza A. Alvarez (Science/STEM/SSP)
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Wilma Q. Del Rosario (LRMS/ADM)
Ma. Teresita E. Herrera EdD (Filipino/GAS/Piling Larang)
Perlita M. Ignacio PhD (EsP)
Dulce O. Santos PhD (Kindergarten/MTB-MLE)
Teresita P. Tagulao EdD (Mathematics/ABM)
Printed in the Philippines by Department of Education – Schools Division of

Pasig City
Fundamentals of
S ENIOR
Accountancy, H IGH
S
Business and
CHOOL
Management 1 (FABM1)
Self-Learning
Module
5
Quarter 3
Internal Users and their

Accounting Information Needs
Introductory Message
For the facilitator:
Welcome to the Senior High School – Fundamentals of Accountancy, Business

and Management 1 Self Learning Module on Internal Users and their Accounting
Information Needs!
This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.
This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:
Welcome to the Fundamentals of Accountancy, Business and Management 1

Self Learning Module on Internal Users and their Accounting Information Needs!
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.
This module has the following parts and corresponding icons:
Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.
Pretest - This measures your prior knowledge about the lesson

at hand.
Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.
Lesson - This section discusses the topic in the module.
Activities - This is a set of activities that you need to perform.
Wrap-Up - This section summarizes the concepts and

application of the lesson.
Valuing - This part integrates a desirable moral value in the

lesson.
Posttest - This measures how much you have learned from the
entire module.
EXPECTATIONS
After going through this module, you are expected to:

1. define internal users;
2. enumerate examples of internal users; and
4. understand the information needs of internal users for decision making.
PRETEST
Directions: Write TRUE if the statement is correct and FALSE if otherwise.
1. Internal users are those that have different specific goals that are
designed to help the entity attain its overall strategies and mission.
2. Internal users use an information system that primarily helps in planning
and control decisions.
3. Internal users include board of directors, chief executive officers,
chief financial officers, internal auditors, plant managers, and
stockholders.
4. Internal users are directly involved in managing the business.
5. Internal users make decisions that affect the internal operations of

the company.
RECAP
Directions: Complete the statements below.

1. External users make decisions based on the company’s financial information.
External users include_______, _______, _______, ______, _______and _________.
2. Accounting provide important data to external users through ________________
________________________________________________________________________________.
3. It is difficult to visualize a business entity without external users because _____
________________________________________________________________________________.
LESSON
The internal users of financial information are those who are within the
organization. They make decisions based on the company’s financial
information. They include:
1. Owners – Owners provide capital for the business. They want to know
the condition of the business and on the returns of their investment.
Accounting information allows them to assess and evaluate the future
of the business and its ability to pay dividends. Accounting information
helps the owners determine future decisions.
2. Management – To run a business, owners hire managers. Managers are

interested in knowing the position of the company. Managers use
financial information to know whether the business under their
guidance is profitable or not. Managers evaluate the performance and
position of the organization to take necessary measures to bring about
improvements in terms of business results.
3. Employees - Employees are hired by the management to perform tasks

needed to support in running a business. For employees to find out the
financial condition of the business and to determine their job security,
they need financial information. Employees want to determine if they
can demand wage rise, better retirement benefits, employment
opportunities, and better working conditions.
The diagram illustrates external and internal users as users

of accounting information.
Source: Accounting-Simplified.com
ACTIVITIES
Activity 1: Discussion Questions

Directions: Provide brief and concise answers to the questions below:
1. Who are the internal users of accounting information?
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.
2. How does accounting information help internal users arrive at certain
business decisions?
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.
Activity 2: Internal Users

Directions: Identify the internal users of the business questions that follow:
1. Does HBC Company have the capacity for wage increase?
2. Can HBC Company provide better retirement benefits?
3. Does HBC Company have the ability to offer job security and better
working conditions?
4. Is the business profitable under our care?
5. Does the business have the ability to pay dividends?
WRAP-UP
To summarize what you have learned in the lesson, complete the statements
below:
1. The internal users include _____________, _______________ and _________________.

2. Managers are interested in accounting financial information because
__________________________________________________________________________________
_________________________________________________________________________________.
3. Owners need accounting information because
__________________________________________________________________________________
________________________________________________________________________________.
VALUING
Reflect on this!
“In the business world, everyone is paid in two coins: cash and experience.
Take the experience first, the cash will come later.” – Harold S. Geneen
POSTTEST
Directions: Complete the table below by placing a checkmark (/) on the appropriate
column.
DESCRIPTIONS OWNERS MANAGERS EMPLOYEES
1. Ability to pay dividends
2. Make future decisions for the

business
3. The profitability of the business

under care
4. Make necessary measures for

improvements in terms of business
results
5. Plan, organize and run a business
6. Job security
7. Better working conditions
8. Retirement benefits
9. Wage rise
10. Employment opportunities

KEY TO CORRECTION
5. OWNERS
4.MANAGERS 10. EMPLOYEES
3.EMPLOYEES 9. EMPLOYEES
2. EMPLOYEES 8. EMPLOYEES
1.EMPLOYEES 7. EMPLOYEES
ACTIVITY 2 6. EMPLOYEES
5. FALSE 5. MANAGERS
4. TRUE 4. MANAGERS
3. FALSE 3. OWNERS
2. TRUE 2. OWNERS
1. TRUE 1. OWNERS
PRE-TEST POST-TEST:
References
Ballada, W. Fundamentals of Accountancy, Business,
and Management 1. DomDane Publishers.2017.
Banggawan, RB. Asuncion, DJ. Fundamentals of Accountancy,

Business, and Management 1. Real Excellence Publishing.2017
Feme, PM. Cabuñag, HP. Fundamentals of Accountancy, Business and

Management 1. Fastbooks Educational Supply, Inc.2017.
Ferrer, RC. Millan, CV. Fundamentals of Accountancy, Business, and Management

1. Bandolin Enterprise.2017.
San Juan, DA. Fundamentals of Accounting. Elmoer Publishing.2018.
Rabo, JS. Tugas,FC.Salendrez, HE. Fundamentals of Accountancy, Business, and

Management 1. Vibal Group Inc.2016
San Juan, D.A. Fundamentals of Accounting. Elmoer Publishing.2018.
“Accounting Is History, Right?” BeansTalk KnowHow, 10 Oct. 2019. Accessed on

July 6, 2020. beanstalkknowhow.com/blog/accounting-is-history-right/.
Bellis, Mary. "History of Accounting From Ancient Times to Today." ThoughtCo.

Accessed on June 20, 2020. https://www.thoughtco.com/history-of-
accounting-1991228.

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Fundamentals of SENIOR

Accountancy, Business HIGH

Internal Users Self-Learning

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

Development Team of the Self-Learning Module

Education Program Supervisors

Librada L. Agon EdD (EPP/TLE/TVL/TVE)

Printed in the Philippines by Department of Education – Schools Division of

Internal Users and their

For the facilitator:

Welcome to the Senior High School – Fundamentals of Accountancy, Business

This Self-Learning Module was collaboratively designed, developed and

Notes to the Teacher

Welcome to the Fundamentals of Accountancy, Business and Management 1

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

Pretest - This measures your prior knowledge about the lesson

Recap - This part of the module provides a review of concepts

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

Valuing - This part integrates a desirable moral value in the

After going through this module, you are expected to:

Directions: Write TRUE if the statement is correct and FALSE if otherwise.

4. Internal users are directly involved in managing the business.

5. Internal users make decisions that affect the internal operations of

Directions: Complete the statements below.

2. Management – To run a business, owners hire managers. Managers are

3. Employees - Employees are hired by the management to perform tasks

The diagram illustrates external and internal users as users

Activity 1: Discussion Questions

Activity 2: Internal Users

1. The internal users include _____________, _______________ and _________________.

DESCRIPTIONS OWNERS MANAGERS EMPLOYEES

1. Ability to pay dividends

2. Make future decisions for the

3. The profitability of the business

4. Make necessary measures for

5. Plan, organize and run a business

7. Better working conditions

10. Employment opportunities

Banggawan, RB. Asuncion, DJ. Fundamentals of Accountancy,

Feme, PM. Cabuñag, HP. Fundamentals of Accountancy, Business and

Ferrer, RC. Millan, CV. Fundamentals of Accountancy, Business, and Management

San Juan, DA. Fundamentals of Accounting. Elmoer Publishing.2018.

Rabo, JS. Tugas,FC.Salendrez, HE. Fundamentals of Accountancy, Business, and

San Juan, D.A. Fundamentals of Accounting. Elmoer Publishing.2018.

“Accounting Is History, Right?” BeansTalk KnowHow, 10 Oct. 2019. Accessed on

Bellis, Mary. "History of Accounting From Ancient Times to Today." ThoughtCo.

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1. The internal users include _____, _ and ___________.