Lesson 1 in Fundamentals of Accounting Business and Management

1. INTRODUCTION TO
ACCOUNTING

2. IS ACCOUNTING
IMPORTANT TO YOU?

3. WHAT IS ACCOUNTING?

4. • Accounting is the process of
Identifying, Recording and
Communicating economic events of
an organization to interested users.

5. IDENTIFYING
• This involves selecting economic
events that are relevant to a
particular business transaction.

6. RECORDING
• Keeping of a chronological diary
of events that are measured in
pesos.

7. COMMUNICATING
• Occurs through preparation and
distribution of financial and other
accounting reports.

8. WHY ACCOUNTING IS CONSIDERED
AS THE LANGUAGE OF BUSINESS?

9. • Is my business earning?
• How much daily or monthly sales do I need in
order to recover my fixed cost?
• Do I need to hire additional workers to help
me with my production?
• Can I afford to set up a new store in another
place? Where do I get the funds?
• Can I afford to pay a bank loan?

10. HISTORY OF ACCOUNTING
• The Cradle of Civilization

11. HISTORY OF ACCOUNTING
• 14th Century- Double Entry
Book keeping

12. HISTORY OF ACCOUNTING
• French Revolution

13. HISTORY OF ACCOUNTING
• The Industrial Revolution

14. HISTORY OF ACCOUNTING
• The Beginnings of Modern
Accounting in Europe and
America

15. HISTORY OF ACCOUNTING
• The Development of Modern
Accounting Standards and
Commerce