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Accounting Business Management 1 W1-2

Accounting provides essential financial information for businesses and decision makers. It tracks financial data over time to determine profitability, cash on hand, and the value of resources and debts. Accounting is both an art and a discipline, recording transactions systematically based on fundamental principles. It deals with financial information and transactions as part of an information system that collects, processes, and communicates important data to interested groups. Profitability measures a company's efficiency and ability to generate returns, while break even analysis determines the sales level needed to cover fixed costs.

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26 views

Accounting Business Management 1 W1-2

Accounting provides essential financial information for businesses and decision makers. It tracks financial data over time to determine profitability, cash on hand, and the value of resources and debts. Accounting is both an art and a discipline, recording transactions systematically based on fundamental principles. It deals with financial information and transactions as part of an information system that collects, processes, and communicates important data to interested groups. Profitability measures a company's efficiency and ability to generate returns, while break even analysis determines the sales level needed to cover fixed costs.

Uploaded by

Shane Ann
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Leeann Sheen M.

Arambala
Grade 12- Scorpio ABM
ACCOUNTING BUSINESS MANAGEMENT 1 W1-2
EXERCISE 1

Accounting is the process by which your company


keeps track of, organizes, and interprets its
ACCOUNTING
financial data.
It informs you if you're earning, how much cash
you have on hand, the current value of your
business's resources and debts, and which aspects
of your business are genuinely financially
beneficial.
It is the language of business, and it is a
monitoring and reporting method used by profit-
seeking companies to report on their activities.
It is also used for decision-making as well.
EXERCISE 2

Nature of Accounting
Accounting is a service activity Serves as a guide for decision-makers by
providing them financial reports. For example, a
client asks you some financial advices so that she
would decide on what path she`ll pursue. Your
knowledge will definitely help her because it
gives you this overview onto what different things
can affect his/her financial status.
Accounting is a process Refers to the strategy of doing a specific job based
on its objectives and goals. It explains how
accounting could affect someone, it could also
affect his/ her objectives and goals at her work.
Accounting is both an art and a discipline It is something that relates to the manner of
recording, classifying, summarizing and finalizing
financial data. Recording financial transactions
and summarizing them is an art form that assists
in understanding the profitability and financial
health of an organization. Accounting is also a
science because it is based on a set of fundamental
principles and thus is structured knowledge.
People used accounting in either way, whether it`s
art or discipline.
Accounting deals with financial information and It is natural that financial transactions and data are
transactions recorded in accounting. It is part of accounting
that dealing information and transactions includes
limited time only by their users or clients.
Accounting is an information system It explained that it collects, processes, and
communicates data of any entity as a service
function. The sales, cash receipts, cash
disbursements, and purchases journals are
included here. Accounts receivable and accounts
payable subsidiary ledgers, which are lists of all
transactions that make up a general ledger
account, are also common in information systems.
This information has emerged to suit the demand
for financial data by various interested groups.
EXERCISE 3
Profitability- Profitability is a measure of a company's efficiency and ultimately, whether or not
it succeeds. Another meaning of profitability is a company's capacity to generate a return on an
investment based on its assets compared to an alternative investment. According to Mr. Juan's
scenario, the profitability of his business is determined by how much money his business receives
each day, and it appears that his wife deposits money from their bank account, which has the
potential to deplete the business's funds as well as their savings.
Break Even- It is the number of fixed expenses that must be paid each period, as well as the sales
level at which a company produces exactly zero profits. This idea is used to depict the financial
structure of a business. As previously said, the profit structure of Mr. Juan's firm is defined by
their sales, whether weekly, monthly or annually. Whether their break-even point is low or high,
this will still assist them in generating ideas for how to improve and expand their firm.

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