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    1 Introduction To Accounting

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    Queency Ramirez
    Accounting involves recording, classifying, and summarizing business transactions and financial events to produce useful information for decision making. It is the process of identifying, measuring, and communicating economic information. The key functions of accounting are measurement, forecasting, decision making, comparison and evaluation, control, and government regulation and taxation. Accounting has evolved from early manual record keeping methods to today's digital cloud-based systems in order to efficiently produce financial reports and manage modern businesses.

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    1 Introduction To Accounting

    Uploaded by

    Queency Ramirez
    33 views24 pages
    Accounting involves recording, classifying, and summarizing business transactions and financial events to produce useful information for decision making. It is the process of identifying, measuring, and communicating economic information. The key functions of accounting are measurement, forecasting, decision making, comparison and evaluation, control, and government regulation and taxation. Accounting has evolved from early manual record keeping methods to today's digital cloud-based systems in order to efficiently produce financial reports and manage modern businesses.

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    PPT - 1 Introduction to Accounting

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    Accounting involves recording, classifying, and summarizing business transactions and financial events to produce useful information for decision making. It is the process of identifying, measuring, and communicating economic information. The key functions of accounting are measurement, forecasting, decision making, comparison and evaluation, control, and government regulation and taxation. Accounting has evolved from early manual record keeping methods to today's digital cloud-based systems in order to efficiently produce financial reports and manage modern businesses.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views24 pages

    1 Introduction To Accounting

    Uploaded by

    Queency Ramirez
    Accounting involves recording, classifying, and summarizing business transactions and financial events to produce useful information for decision making. It is the process of identifying, measuring, and communicating economic information. The key functions of accounting are measurement, forecasting, decision making, comparison and evaluation, control, and government regulation and taxation. Accounting has evolved from early manual record keeping methods to today's digital cloud-based systems in order to efficiently produce financial reports and manage modern businesses.

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    of 24

    INTRODUCTION TO

    ACCOUNTING
    FMCC110 – PRINCIPLES OF ACCOUNTING

    JOANN MARIE U. REVILLA


    ACTIVITY 1. WHAT’S IN THE DATA?
    The data presented below pertains to a Sari-sari Store owned by Tina
    Go. Make a short report (any kind of report that you can think of) out of
    the data.

    • Cost of assorted grocery items sold, P18,275


    • Transportation for buying grocery items , P 450
    • Payment for plastic bags used in selling grocery items, P200
    • Payment for store helper , P1,500
    • Payment for CASURECO, P1,200
    • Allowance “baon” given to Tina’s son, Junjun , P1,000
    • Sold assorted grocery items, P31,875
    Accounting
    is responsible for making sense of these
    business records through the reports.
    DEFINITION OF
    ACCOUNTING
    Accounting is the art of recording, classifying, and
    summarizing in a significant manner and in terms of money,
    transactions and events which are, in part at least, of
    financial character, and interpreting the results thereof.”
    – American Institute of Certified Public Accountants (AICPA)
    “Accounting is the process of identifying, measuring and
    communicating economic information to permit informed
    judgment and decision by users of the information.”
    – American Accounting Association (AAA)
    “Accounting is a service activity. Its function is to provide
    quantitative information, primarily financial in nature, about
    economic entities, that is intended to be useful in making
    economic decision.”
    – Accounting Standards Council (ASC), succeeded by Financial
    Reporting Standards Council (FRSC).
    ACCOUNTING
    PROCESS
    1. Identifying
    - recognition or non-recognition of business activities as
    accountable events.
    2. Measuring
    - the assigning of peso amounts to the accountable events
    and economic transactions.
    3. Communicating
    - is the process of preparing and distributing accounting
    reports to potential users of accounting information.
    This process includes the following phases:
    ➢Recording
    ➢Classifying
    ➢Summarizing
    ➢Interpretation
    NATURE OF
    ACCOUNTING
    1. Accounting is a process
    2. Accounting is an art
    3. Accounting is a means and not an end
    4. Accounting deals with financial information
    and transactions
    5. Accounting is an information system
    FUNCTIONS OF
    ACCOUNTING
    The main functions of accounting are as follows:

    1. Measurement
    2. Forecasting
    3. Decision Making
    4. Comparison and Evaluation
    5. Control
    6. Government regulation and Taxation
    HISTORY OF ACCOUNTING
    2500 BC – 400 BC

    “auditor”
    1300-1400

    Luca Pacioli Double Entry Bookkeeping


    1500-1700

    Financial Management
    Accounting Accounting
    1700-1800

    Industrial Revolution
    1900-PRESENT

    IAS to IFRS
    MODERN DAY – CLOUD ACCOUNTING
    Questions?

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