Republic of the Philippines

Department of Education
REGION VIII
DIVISION OF SAMAR
DISTRICT OF WRIGHT I
WRIGHT NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
PARANAS, SAMAR

LEARNER ACTIVITY SHEET/WORKSHEETS in

FUNDAMENTALS OF ACCOUNTACY, BUSINESS AND MANAGEMENT 1

Name of Learner: ______________________________________________ Date: _________________

Grade Level: 12 Section: __________ Teacher: Ma. Ermie S. Gellena

INTRODUCTION TO ACCOUNTING
Title

I. Introduction
Accounting, as a witness to hold to history, is as old as mankind. It is believed that even
during the creation, God made use of accounting to ensure that plants, animals, human beings,
and other creatures are fully accounted for. During the time of Noah, in the account of the great
flood, it is believed that animals got into the ark in pairs and were fully accounted for. In the
New Testament, two famous tax collectors were mentioned. They were Matthew, one of the 12
disciples, and Zacchaeus, the one who climbed the sycamore tree to see Jesus.

II. MELC with code

Narrate the history/origin of accounting. ABM_FABM11- IIIa-4

III. Strategy

A. Explore
Without accounting, a business couldn’t function optimally; it wouldn’t know
whether its making profit, and it wouldn’t know its financial situation.
Think twice!..
Ricardo Cortez and Josie Hernandez were partners in a footwear factory in Marikina. They
had 200 workers in the 1990s, who helped them manufacture different designs of shoes, slippers,
etc. which they displayed and sold by the thousands in their store at the Cubao Expo. They were
considered successful at that time.
Their footwear business slowed down when low-priced Chinese shoe imports became popular
in the Philippine market. Ricardo and Josie often quarreled about money matters and management
styles. Ricardo hold more entrepreneurial characteristics: creative/innovative, flexible, updated on
new trends, and was willing to take risks. Josie belonged to the “old school” of businessman who

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0917-304-5347 / 0949-994-2133 Wright NHS Senior High Department
 Republic of the Philippines
Department of Education
REGION VIII
DIVISION OF SAMAR
DISTRICT OF WRIGHT I
WRIGHT NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
PARANAS, SAMAR

could not understand Ricardo’s propositions regarding the rehabilitation of their business: getting
business loans, introducing unique footwear designs, opening “tiangge” stalls, online selling etc.
She was contented with the small profits they were making.
Since their business is a partnership, Ricardo cannot carry out his plans without Josie’s
consent. Josie’s pessimism, for him is unacceptable and he foresees the closure of their business in
a few more years if Josie will go on with her way of thinking.

Question.

1. If you are in Ricardo’s place, what will you do to solve their business problems? Give at
least three solutions.

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B. Learn
Let’s go back to where it was started!
Accounting is as old as civilization itself. It has evolved in response to various social and economic
needs of men. Accounting started as a simple recording of repetitive exchanges. The history of accounting is
often seen as indistinguishable from the history of finance and business. Following is the evolution of
accounting:

The Cradle of Around 3600 B.C., record-keeping was already common from Mesopotamia,
Civilization 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.

4th Century - Double- The most important event in accounting history is generally considered to be
Entry Bookkeeping the dissemination of double entry bookkeeping by Luca Pacioli (‘The Father of
Accounting’) in 14th century Italy. Pacioli was much revered in his day, and
was a friend and contemporary of Leonardo da Vinci. The Italians of the 14th
to 16th centuries are widely acknowledged as the fathers of modern
accounting and were the first to commonly use Arabic numerals, rather than
Roman, for tracking business accounts. Luca Pacioli wrote Summa de
Arithmetica, the first book published that contained a detailed chapter on
double-entry bookkeeping.

French Revolution The thorough study of accounting and development of accounting theory
(1700s) began during this period. Social upheavals affecting government, finances,

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0917-304-5347 / 0949-994-2133 Wright NHS Senior High Department
 Republic of the Philippines
Department of Education
REGION VIII
DIVISION OF SAMAR
DISTRICT OF WRIGHT I
WRIGHT NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
PARANAS, SAMAR

laws, customs and business had greatly influenced the development of

accounting.

The Industrial Mass production and the great importance of fixed assets were given attention
Revolution (1760- during this period.
1830)

19th Century – The The modern, formal accounting profession emerged in Scotland in 1854 when
Beginnings of Modern Queen Victoria granted a Royal Charter to the Institute of Accountants in
Accounting in Europe Glasgow, creating the profession of the Chartered Accountant (CA). In the late
and America 1800s, chartered accountants from Scotland and Britain came to the U.S. to
audit British investments. Some of these accountants stayed in the U.S.,
setting up accounting practices and becoming the origins of several U.S.
accounting firms. The first national U.S. accounting society was set up in
1887. The American Association of Public Accountants was the forerunner to
the current American Institute of Certified Public Accountants (AICPA).
In this period rapid changes in accounting practice and reports were made.
Accounting standards to be observed by accounting professionals were
promulgated. Notable practices such as mergers, acquisitions and growth of
multinational corporations were developed. A merger is when one company
takes over all the operations of another business entity resulting in the
dissolution of another business. Businesses expanded by acquiring other
companies. These types of transactions have challenged accounting
professionals to develop new standards that will address accounting issues
related to these business combinations.

The Present - The The accounting profession in the 20th century developed around state
Development of requirements for financial statement audits. Beyond the industry's self-
Modern Accounting regulation, the government also sets accounting standards, through laws and
Standards and agencies such as the Securities and Exchange Commission (SEC). As
Commerce economies worldwide continued to globalize, accounting regulatory bodies
required accounting practitioners to observe International Accounting
Standards. This is to assure transparency and reliability, and to obtain
greater confidence on accounting information used by global investors.
Nowadays, investors seek investment opportunities all over the world. To
remain competitive, businesses everywhere feel the need to operate globally.
The trend now for accounting professionals is to observe one single set of
global accounting standards in order to have greater transparency and
comparability of financial data across borders.

Question.
1. Why do Pacioli regarded as a Father of Modern Accounting?
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0917-304-5347 / 0949-994-2133 Wright NHS Senior High Department
 Republic of the Philippines
Department of Education
REGION VIII
DIVISION OF SAMAR
DISTRICT OF WRIGHT I
WRIGHT NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
PARANAS, SAMAR

______________________________________________________________________________________
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C. Engage
1. Why do we need to study first the history of accounting? Does it help in terms of decision
making? How?

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2. Why has recording system, doubled-entry, devised in medieval times lasted for so long?

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D. Apply
Narrate the main events of how accounting started.

IV. Guide Questions

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0917-304-5347 / 0949-994-2133 Wright NHS Senior High Department
 Republic of the Philippines
Department of Education
REGION VIII
DIVISION OF SAMAR
DISTRICT OF WRIGHT I
WRIGHT NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
PARANAS, SAMAR

 Trace the developments of accountancy in the Philippines.

V. Rubrics
CRITERIA DESCRIPTION POINTS POINTS
OBTAINED
Content The content was well-thought of; guide 4
questions were thoroughly answered
Organization The paper was well-written with ideas easily 3
conveyed to readers.
Development Points are thoroughly developed 3
TOTAL 10
*A. Explore, B. Learn, C. Learn, D. Apply

VI. References
Rabo, Joy S., et. al., Fundamentals of Accountancy, Business and Management 1, Vibal
Group Inc.
Teachers Guide, Fundamentals of Accountancy, Business and Management 1

VII. Key to Correct Answers

Prepared by

MA. ERMIE S. GELLENA

Subject Teacher

Noted:

MIGUEL P. DABUET
Secondary School Principal IV

Call or text. For updates. Visit.

0917-304-5347 / 0949-994-2133 Wright NHS Senior High Department
 Republic of the Philippines
Department of Education
REGION VIII
DIVISION OF SAMAR
DISTRICT OF WRIGHT I
WRIGHT NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
PARANAS, SAMAR

Call or text. For updates. Visit.

0917-304-5347 / 0949-994-2133 Wright NHS Senior High Department