Accounting and Its Environment
Accounting and Its Environment
Accounting and Its Environment
Recording
-or JOURNALIZING is the process of systematically maintaining a
record of all economic business transactions after they have been
identified and measured.
Classifying
-is the sorting or grouping of similar and interrelated economic
transactions into their respective classes.
Summarizing
-is the preparation of financial statements which include the
statement of financial position, statement of comprehensive
income, statement of changes in equity and statement of cash
flows..
Objective of Accounting
-to provide quantitative financial information about a business
that is useful to statement users particularly owners and
creditors, in making economic decisions.
Forms of Business Organizations
1. SOLE PROPRIETORSHIP
OR
Forms of Business Organizations
3. CORPORATION
4. Education/Academe
This guarantees the continued development of the profession. By this,
accountants are considered modern day heroes as they make others understand the
body of accounting knowledge and prepare the candidates for the tough CPA
exams.
BRANCHES OF ACCOUNTING
MANAGEMENT
ACCOUNTING It incorporates cost accounting data and adapts
them for specific decisions which management
may be called upon to make. It is needed by
management in planning, controlling an evaluating
the entity’s operations.
BRANCHES OF ACCOUNTING
Integrity
Confidentiality
Objectivity
Professional Behavior
Also known as the Republic Act No. 9298 is the law regulating the practice of
accountancy in the Philippines
IASC -IAS
IASB -IFRS
SIC/ IFRIC -Interpretations
Philippines
SECONDARY
Employees Customers
Government and
Public
their agencies
Concerned with the risk inherent in, and return provided by,
Investors
their investments.