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Fundamentals of Accountancy: By: Win Ballada, CPA 2017 Edition For ABM

This document provides an overview of fundamentals of accountancy. It discusses the purpose of accounting as providing necessary information to management to plan and control business activities. Effective management requires training in accounting to identify pertinent decision making elements. Accounting is defined as recording, classifying, and summarizing financial transactions and interpreting the results. The development of accounting from tokens to paper money is outlined. Key contributors to the field like Pacioli and Petri are mentioned. Branches of accounting like auditing, bookkeeping, cost accounting, financial accounting, management accounting, and taxation are briefly defined. Students are assigned to define accounting terms for the next meeting.

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203 views

Fundamentals of Accountancy: By: Win Ballada, CPA 2017 Edition For ABM

This document provides an overview of fundamentals of accountancy. It discusses the purpose of accounting as providing necessary information to management to plan and control business activities. Effective management requires training in accounting to identify pertinent decision making elements. Accounting is defined as recording, classifying, and summarizing financial transactions and interpreting the results. The development of accounting from tokens to paper money is outlined. Key contributors to the field like Pacioli and Petri are mentioned. Branches of accounting like auditing, bookkeeping, cost accounting, financial accounting, management accounting, and taxation are briefly defined. Students are assigned to define accounting terms for the next meeting.

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Bell
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© © All Rights Reserved
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Fundamentals of Accountancy

By:
Win Ballada, CPA
2017 Edition for ABM
Purpose of Accounting

To provide the information


necessary to the organization’s
management to enable it to plan
and control its business
activities.
Purpose of Accounting

The manager who lacks training


in accounting is unable to
identify all the pertinent elements
of the decision-making process,
and thus, it is highly doubtful that
he or she can function as an
effective manager.
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 a financial
character, and interpreting the
results thereof.
Development of Accounting

Bullae – are clay balls where tokens are sealed


Development of Accounting

The symbols impressed on wet clay tablets replaced


the tokens
Development of Accounting

First paper money (China)


Fra Luca Bartolomeo de Pacioli 

(1445 – 1517)
An Italian
mathematician,
Franciscan friar,
collaborator with
Leonardo da Vinci,
and seminal contributor
to the field now known
as accounting.
Father of double-entry
accounting.
Nicolas Petri

First to group
similar transactions
in a separate record
and enter the
monthly totals in the
journal, rather than
recording all
transactions
seriatim (in series).
Double – Entry Accounting

Information
Provides an
extracted
accurate record
from the system
of what has
can help the owner
happened to a
or the manager
business over a
operate the
specific period
business much
of time
more effectively.
Branches of Accounting

• Auditing

Once accounts have been prepared, they may


have to be checked in order to ensure that
they do not present a distorted picture

• Bookkeeping

Mechanical task involving the collection of


basic financial data.
Branches of Accounting

• Cost Accounting

Similar to bookkeeping except that data are


recorded in very much greater detail. A cost
accounting system contains a great deal more
data, and thus once the data are summarized
there is much more information available to
the management of the company.
Branches of Accounting

• Financial Accounting

Financial managers are responsible for setting


financial objectives, making plans based on
those objectives, obtaining the finance needed
to achieve the plans, and generally
safeguarding all the financial resources of the
entity.
Branches of Accounting

• Management Accounting

Incorporates cost accounting data and adapts


them for specific decisions which management
may be called upon to make.

• Taxation

Accountants involved in tax work are


responsible for computing the amount of tax
payable.
Assignment for Next Meeting
LOOK FOR THE DEFINITION
Cash in Bank
Petty Cash Account
Inventory
Accounts Receivable
Prepaid Expense

• ½ CW Yellow Pad
• Handwritten

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