Republic of the Philippines

Department of Education
Region II – Cagayan Valley
Schools Division of Nueva Vizcaya

BUSINESS FINANCE (1st Quarter)

Name of Learner: _________________________________ Grade Level: _________
Section: _________________________________________ Date: _______________

LEARNING ACTIVITY SHEET

Introduction to Financial Management

Background Information
Finance is defined as the providing of funding and management of money for individuals,
businesses, and governments. The financial system includes the circulation of money, managing
of investments, and lending of funds. In businesses, the finance team is responsible for ensuring
the company has enough capital, that the appropriate investments are made, and that the
company’s revenues and expenses are well managed. Finance involves the evaluation,
disclosure, and management of economic activity and is crucial to the successful and efficient
operation of firms and markets.

Types of Finance

There are three main types of finance:

1. Personal
2. Corporate (Business)
3. Public (Government)

1 Personal Finance

From a personal perspective, finance is the management of one’s income, expenses, investments,
and obligations. Individuals often work with a personal banker, investment advisor, accountant,
mortgage broker, and other professionals to manage their financial situation.

Below are examples of the types of items people deal with on a personal financial level.

Examples:

 Bank accounts

Address: Quezon St., Don Domingo Maddela, Bayombong, Nueva Vizcaya

Telephone Nos.: (078) 362-0106, 09171589946
Email Address:nuevavizcaya@deped.gov.ph
Website: www.deped-nv.com.ph
 Republic of the Philippines
Department of Education
Region II – Cagayan Valley
Schools Division of Nueva Vizcaya
 Credit cards
 Mortgages
 Lines of credit
 Employment income
 Personal spending and expenses
 Taxes
 Savings
 Investments (stocks, bonds, real estate, etc.)

#2 Corporate Finance (Business)

From a business perspective, corporate finance is the management of a company’s funding, its
sources of revenue, use of capital, and the management of its profit and loss (P&L) statement.
The professionals at a business that have the responsibility for managing this area include
accountants, financial analysts, managers, and executives such as the Chief Financial Officer
(CFO).

Examples:

 Debt
 Equity
 Cost of Capital
 Capital Structure
 Return on Investment (ROI)
 Assets
 Liabilities
 Balance Sheet
 Revenues
 Expenses
 Profit
 Income Statement
 Cash Flow
 Dividends
 Cash Flow Statement

Address: Quezon St., Don Domingo Maddela, Bayombong, Nueva Vizcaya

Telephone Nos.: (078) 362-0106, 09171589946
Email Address:nuevavizcaya@deped.gov.ph
Website: www.deped-nv.com.ph
 Republic of the Philippines
Department of Education
Region II – Cagayan Valley
Schools Division of Nueva Vizcaya
#3 Public Finance (Government)

From a government perspective, finance includes the management of a country’s national

budget, treasury department, the central bank, and other government agencies. It focuses on
collecting tax revenue and spending that money on national services and programs such as roads,
hospitals, and social security.

Examples:

 Income tax
 Sales tax
 Property tax
 Inflation
 Infrastructure spending (roads, hospitals, etc.)
 Social security and insurance
 Supply of money
 International trade
 Employment
 Gross national product (GNP)
 National debt
 National budget

Learning Competencies with Code

 Define accounting. (ABM_FABM11_IIIa-1)
 Describe the nature of accounting. (ABM_FABM11_IIIa-2)
 Narrate the history/origin of accounting. (ABM_FABM11_IIIa-4)

Directions/Instructions:
Below are set of activities prepared for you to understand better the concept of
accounting. The background information above serves as your guide in answering these
activities. If you have further queries, feel free to ask me. Happy learning!

Activity 1: Tell Me What You Know

Establish your own definition of accounting based from this lesson, your experiences, and
observations.

Address: Quezon St., Don Domingo Maddela, Bayombong, Nueva Vizcaya

Telephone Nos.: (078) 362-0106, 09171589946
Email Address:nuevavizcaya@deped.gov.ph
Website: www.deped-nv.com.ph
 Republic of the Philippines
Department of Education
Region II – Cagayan Valley
Schools Division of Nueva Vizcaya
Activity 2: Identify Me!
Directions: Identify what is being described in each item below.
_________1. He is called “The Father of Accounting”.
_________2. This process occurs through the preparation and distribution of financial and other
accounting reports.
_________3. It occurs when one company takes over all the operations of another business entity
resulting in the dissolution of another business.
_________4. During this period, mass production and the great importance of fixed assets were
given attention.
_________5. This involves keeping a chronological diary of events that are measured in pesos.
_________6. It is a systematic recording of financial transactions and the presentation of the
related information to appropriate persons.
_________7. The thorough study of accounting and development of accounting theory began
during this period.
_________8. These are economic events of an organization.
__________9. This involves selecting economic events that are relevant to a particular business
transaction.
________10. The first book written and published by Luca Pacioli that contained a detailed
chapter on double-entry bookkeeping.

Activity 3: Case Study

Mr. Juan is a retired government employee who is good at baking. One day, he decides
to put up a bakery shop in your barangay. He renovates a portion of his house to serve as the
area for the production of bread. He purchases baking equipment and raw materials to produce
five different types of bread. Mr. Juan also hires Jose to help him with the baking and, at the
same time, to be in-charge of sales. Mr. Juan pays Jose on a weekly basis. Every day, Mr.
Juan’s wife deposits the daily cash sales in their bank account at XY Savings Bank. With the
help of accounting, what possible decisions or questions of Mr. Juan can accounting provide an
answer to?

Reflection

Guide Questions: Is accounting important to you? How does it affect your daily activities?

Address: Quezon St., Don Domingo Maddela, Bayombong, Nueva Vizcaya

Telephone Nos.: (078) 362-0106, 09171589946
Email Address:nuevavizcaya@deped.gov.ph
Website: www.deped-nv.com.ph
 Republic of the Philippines
Department of Education
Region II – Cagayan Valley
Schools Division of Nueva Vizcaya
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_______________________________________________________________

References for learners

 Valencia, E. and Roxas, G. (2009). Basic Accounting, 3rd ed. Valencia Education Supply
 Valix, Conrado T. et.al. (2015). Financial Accounting, Vol. 1, First part. GIC Enterprises
& Co. Inc.
 Weygandt, J. et. al. (2012) Accounting Principles 10th ed. John Wiley & Sons (Asia) Pte.
Ltd.
• Accounting Theory (n.d.) Retrieved from http:// accountingtheory.weebly.com/nature-
and-scope-of-accouting

Answer Key

Activity 1:
Accounting is the process of identifying, recording, and communicating economic events
of an organization for interested users. It involves selecting economic events that are relevant to
a particular business transaction, keeping a chronological diary of events that are measured in
pesos, and the preparation and distribution of financial and other accounting reports. Accounting
is a systematic recording of financial transactions and the presentation of the related information
to appropriate persons. It is called the language of business because it is a means by which
business information is communicated to business owners and stakeholders. It also provides
information for managers and owners to use in operating the business.

Activity 2:
1. Luca Pacioli 6. Accounting
2. Communicating 7. French Revolution (1700s)
3. Merger 8. Transactions
4. Industrial Revolution (1760-1830) 9. Identifying

Address: Quezon St., Don Domingo Maddela, Bayombong, Nueva Vizcaya

Telephone Nos.: (078) 362-0106, 09171589946
Email Address:nuevavizcaya@deped.gov.ph
Website: www.deped-nv.com.ph
 Republic of the Philippines
Department of Education
Region II – Cagayan Valley
Schools Division of Nueva Vizcaya
5. Recording 10. Summa de Arithmetica

Activity 3:
1. Is my business earning? (Profitability)
2. How much daily or monthly sales do I need in order to recover my fixed cost? (Break-even)
3. Do I need to hire additional workers to help me with my production?
4. Can I afford to set up a new store in another place? Where do I get the funds?
5. Can I afford to pay a bank loan?

Prepared by:

MARISSA C. ALMUETE
Subject Teacher, Bagabag National High School

Address: Quezon St., Don Domingo Maddela, Bayombong, Nueva Vizcaya

Telephone Nos.: (078) 362-0106, 09171589946
Email Address:nuevavizcaya@deped.gov.ph
Website: www.deped-nv.com.ph