1. introduction to accounting
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Accounting involves identifying, recording, and communicating economic events of a business. It identifies relevant events like sales and purchases. Recording involves keeping a chronological record of monetary transactions in journals and ledgers. Communicating is done through preparing and distributing financial reports. Accounting started as early as 3600 BC with record keeping on clay tablets in Mesopotamia. Luca Pacioli is considered the Father of Accounting for disseminating double-entry bookkeeping.
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 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. Juans 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?