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Introduction to
Accounting
Do your parents ask how
you spend your
allowance every day?
When buying a drink do
you compare prices and
then decide?
When going home, do you
choose to walk from school
rather than riding a
motorcycle because
you want to save?
What is
Accounting?
¡°Accounting is the process of:
IDENTIFYING,
RECORDING, and
COMMUNICATING
economic events of an organization to
interested users.¡±
Identifying
- involves selecting
economic events that
are relevant to a
particular business
transaction.
Example:
Sales of bread
Purchase of materials
¡°Accounting is the process of:
IDENTIFYING,
RECORDING, and
COMMUNICATING
economic events of an organization to
interested users.¡±
Recording
- involves keeping a
chronological diary of
events that are
measured in pesos.
The diary referred to
in the definition are
the:
journals and ledgers
¡°Accounting is the process of:
IDENTIFYING,
RECORDING, and
COMMUNICATING
economic events of an organization to
interested users.¡±
Communicating
- occurs through
the preparation and
distribution of
financial and other
accounting reports
Nature of
Accounting
Accounting is¡­
? A service activity
? A process
? Deals with financial information and transactions
? An information system
When
Accounting
started?
? Around 3600 B.C., record-keeping was already
common from Mesopotamia, China and India to
Central and South America. The oldest evidence of
this practice was the ¡°clay tablet¡± of Mesopotamia
which dealt with commercial transactions at the time
such as listing of accounts receivable and accounts
payable
? Luca Pacioli ¨C ¡°The Father of Accounting¡±
- dissemination of double entry bookkeeping
? Mr. Juan is a retired government employee who is good at
baking. One day he decides to put up a bakery shop in your
barangay. He renovates a portion of his house to serve as the
area for the production of bread. He purchases baking
equipment and raw materials to produce five different types of
bread. Mr. Juan also hires Jose to help him with the baking
and, at the same time, to be in-charge of sales. Mr. Juan pays
Jose on a weekly basis. Every day, Mr. Juan¡¯s wife deposits
the daily cash sales in their bank account at XY Savings Bank
With the help of accounting, what possible decisions or questions of
Mr. Juan can accounting provide?
Short Quiz!
1. Define Accounting.
2. Give 5 example of economic events relevant to the
business.
3. How to record business transactions?
4. Who is the father of accounting?
5. What is the evidence found in Mesopotamia that record-
keeping already existed in Mesopotamia?
6. What is the function of accounting?

More Related Content

1. introduction to accounting

  • 2. Do your parents ask how you spend your allowance every day?
  • 3. When buying a drink do you compare prices and then decide?
  • 4. When going home, do you choose to walk from school rather than riding a motorcycle because you want to save?
  • 6. ¡°Accounting is the process of: IDENTIFYING, RECORDING, and COMMUNICATING economic events of an organization to interested users.¡± Identifying - involves selecting economic events that are relevant to a particular business transaction. Example: Sales of bread Purchase of materials
  • 7. ¡°Accounting is the process of: IDENTIFYING, RECORDING, and COMMUNICATING economic events of an organization to interested users.¡± Recording - involves keeping a chronological diary of events that are measured in pesos. The diary referred to in the definition are the: journals and ledgers
  • 8. ¡°Accounting is the process of: IDENTIFYING, RECORDING, and COMMUNICATING economic events of an organization to interested users.¡± Communicating - occurs through the preparation and distribution of financial and other accounting reports
  • 10. Accounting is¡­ ? A service activity ? A process ? Deals with financial information and transactions ? An information system
  • 12. ? Around 3600 B.C., record-keeping was already common from Mesopotamia, China and India to Central and South America. The oldest evidence of this practice was the ¡°clay tablet¡± of Mesopotamia which dealt with commercial transactions at the time such as listing of accounts receivable and accounts payable ? Luca Pacioli ¨C ¡°The Father of Accounting¡± - dissemination of double entry bookkeeping
  • 13. ? Mr. Juan is a retired government employee who is good at baking. One day he decides to put up a bakery shop in your barangay. He renovates a portion of his house to serve as the area for the production of bread. He purchases baking equipment and raw materials to produce five different types of bread. Mr. Juan also hires Jose to help him with the baking and, at the same time, to be in-charge of sales. Mr. Juan pays Jose on a weekly basis. Every day, Mr. Juan¡¯s wife deposits the daily cash sales in their bank account at XY Savings Bank With the help of accounting, what possible decisions or questions of Mr. Juan can accounting provide?
  • 14. Short Quiz! 1. Define Accounting. 2. Give 5 example of economic events relevant to the business. 3. How to record business transactions? 4. Who is the father of accounting? 5. What is the evidence found in Mesopotamia that record- keeping already existed in Mesopotamia? 6. What is the function of accounting?