Accounting and Business/Management

1. FUNDAMENTALS OF
ACCOUNTING(FOA)
INTRODUCTION TO FOA ( CHAPTER 1)
*WHAT IS ACCOUNTING*BOOKKEEPING AND ACCOUNTING*ACCOUNTANCY AS
A PROFESSION*PUBLIC ACCOUNTING*PRIVATE BUSINESS ACCOUNTING
*GOVERNMENT ACCOUNTING
PRESENTED BY:
RYAN PAUL FLORANTE BEDAYO
VICTORIAS NATIONAL HIGH SCHOOL
VICTORIAS CITY, NEGROS OCCIDENTAL

2. WHAT IS ACCOUNTING?
Accounting is a service activity which provides quantitative
information, primarily financial in nature and intended to
guide organizations in making economic decisions.
It involves the record keeping, classification, summarization, and
reporting of financial information.
The financial information will then be interpreted as to
business stability and profitability.

3. The fundamentals of financial accounting are based on
accounting concepts and principles guiding the practice of
accountancy.
 Accounting Concept is an abstract idea which serves as
a basis in the interpretation of accounting information.
It explains and justifies the treatment of transactions,
procedures, or events.
 Accounting Principle is a broad rule and procedure
guiding the accounting profession in quantifying,
recording, and reporting the financial activities of a
business.

4. BOOKKEEPING AND ACCOUNTING
Many people confuse accounting and bookkeeping as one
and the same. It should be emphasized that bookkeeping is only
the record-keeping part of accounting. The bookkeeper records
business transactions and events systematically and
chronologically.

5. ACCOUNTANCY AS A PROFESSION
Accounting as a profession is commonly classified into three
main categories-public accounting, private business accounting,
and government accounting. Students are guided toward the
accountancy profession by CPAs who decide their time in
education.

6. PUBLIC ACCOUNTING
Public accountants offer their professional services to public
for a fee, in the same manner as doctors, lawyers, architects, or
engineers do. The important services they offer are as follows:
• Auditing-Public accountants conduct an examination of business
records in order to verify their accuracy and to detect any
fraud and error. They certify the prepared financial statements
as fairly correct.

7. • Management Advisory Service- Public accountants provide
counsel and technical assistance in analyzing and controlling
operations with the purpose of helping improve the use of
resources of the client company.
• Tax Accounting- Public accountants do the recognition,
computation, and payment of taxes to the national and local
government in accordance with the laws and regulations set by
the Bureau of Internal Revenue (BIR) and other government
agencies.

8. PRIVATE BUSINESS ACCOUNTING
Accountants employed in business enterprise are categorized to be
in private business accounting. Depending on the size of the Business, an
enterprise can either have one accountant or an accountant department
employing several accountants. Private business accounting services are
as follows:
1. General Accounting- Private accountants are tasked with the
recording of business transactions to the books of original entry, the
summarization of such transactions, and the preparation of financial
reports. They are also responsible for cash receipts and disbursements
and the operation of the accounting system for control purposes.

9. 2. Cost Accounting – Private accountants also deal with cost
accounting which is commonly described as accounting for unit and
total costs of manufactured goods. It is generally associated with
large industries and service companies but considered most
valuable to other wholesale and retail firms. It is used for control
purposes.
3. Budgeting – Private accountants prepare the procedure for
planning, coordinating, and controlling the business operations
based on both internal and external factors affecting the business.
They also prepare the projection of future revenues, costs, and
expenses of the business.

10. GOVERNMENT ACCOUNTING
Accountants employed by government institutions observe
basic accounting principles and special procedures relative to the
operations of government. The adopted procedures are slightly
different from commercial accounting, since the accounting system
for government is on budgets and funds. Should generally
accepted accounting procedures differ from the legal basis, the
law prevails.

11. REFERENCES:
BOOKS
Burns, Thomas and Harvey Hendrickson. The Accounting Primer: An Introduction to
Financial Accounting. U.SA., 1972.
Gayle, Rayburn. Accounting Principles. 3rd ed. U.S.A., 1972.
Mason, Perry, Sidney Davidson, and James Schindler. Fundamentals of Acc0unting.
New York, 1959.