BASIC ACCOUNTING

BPA 1-1
GROUP No.1
October 4, 2021

LEVEL OF UNDERSTANDING ON LESSON 1:

Accounting and Business

Introduction:
Accounting is quite a challenge to us, as a whole. It is a good subject to learn because accounting
knowledge is always in demand. So far, we are on a good path learning the basics of accounting. We’ve
learned how accounting affects business and how it allows organizations to identify cash inflows and
outflows. This accounting course provided us a great opportunity to understand the various important
aspects of accounting that I believe will be helpful in my future practical life. This course has helped us
to comprehend numerous essential ideas of accounting.

The most interesting thing we found about this course is that it introduces to all basic aspects of
Accounting. The course covered the study of accounting based on various organizations that are present
in the real life scenarios such as Sole Proprietorship, partnerships, corporation , limited liability company
and corporation sole. In doing so, we were able to relate with everything that we’ve learned from the
course.

Body:
The five forms of business organization include Sole Proprietorship, Partnership and Corporation, LLC
and corporation sole. In a sole proprietorship, one individual owns and controls the business. The
person handles all complaints from customers; bears all risk of ownership, make decisions and most
importantly the person receive all the benefits from the business. However, the owner can seek the help
of members of the family in operating the business. Moving forward in partnership, two or more
persons agree to do business together with an aim of earning and sharing of profits. The business can be
‘‘carried on by all partners or any of them acting for all. The partners take the responsibility of
controlling and managing the business as spelt out in the partnership deed. In corporation, there is
separate legal entity between the business and the individuals within the entity. Since its structure is
complex, it is frightfully expensive to organize. The management of corporation lies with an individual
who owns most shares of stock and decision from the board. However, the size of the corporation
affects how it works formally or informally. In addition, LLC or Limited Liability Company accepts its
owners to enjoy the benefits of both corporations and sole proprietorship, and it also has some minor
similarities to corporation because the damages, losses and profit can be transferred to its owners
without taxation of the business and owners are also protected from personal liability. And, LLC and
corporation also differ in high technical in nature. Another difference is that LLCs has managers but in
corporation, it has a board of directors. Apart from this, corporation sole or Sole Corporation or one-
person corporation only has one owner and in time, a successor that will inherit the business and take
over and also its liability is passing on to the personal assets of the owner. Also, its subsequent
successors are “Granted the lawful status of a corporation”.

As accounting has played a great role in our economy, there are still things that positively impacts and
negatively impacts the nature of accounting like how business owners nowadays prefer to establish a
service type of business since it's easy to account especially when they are only starting from scratch.
Aside from that, sole proprietorship is easy to establish compared with partnership & corporation and
requires only a little capital to put up. Corporation & partnership, compared to sole proprietorship, earn
profits more. In addition to that, accounting requires skills and proper training on what kind of service
you are offering. Expertise in one’s field is a must. Sole proprietorship, when you experience bankruptcy,
the sole owner will shoulder the burden by him/herself compared to partnership & corporation, in
which you can share the liability with. Corporation ends to have a high liability rate, when not taken off
properly will result to the great damage.

Accounting has long been seen as the business language, as language is governed by grammar, and
accounting is ruled by accounting, and so on. Just as language conveys the intellect by neatly and clearly
arranging words, accounting does the same by recording all transactions in the book of accounts.
Language allows us to express ourselves. Similarly, the results of activities are expressed through
accounting with the help of financial statements. Accounting assesses a company's profitability and
financial situation. As a result, accounting language represents the entire story of the company through
multiple accounting processes. With the use of various accounting data, the firm's success can simply be
compared and seen. Somehow, there are stages in our lives that we must carefully record, classify,
summarize, and interpret so that what is given is appropriately understood by the readers and not run
the risk of being misinterpreted, much as in accounting.

Conclusion:
In conclusion, incorporating the accounting idea into a firm is critical since it gives quantitative data
for a comprehensive assessment of the company's success. Accounting is a service-oriented profession.
Keeping our accounting records clean and up to date is critical to keeping our company relevant in
today's complicated and dynamic business world. Accounting is beneficial to a business since it aids in
the evaluation of a company's performance, assists in statutory compliance, and assists in the
development of business goals, and aids in the management and monitoring of cash flow. Accounting is
a necessary for running a business successfully in daily business activities, since it can aid in the
company's future growth. As a result, the corporation must use an accounting system to manage its
operations. Aside from that, the company should continue to revise its vision and objective in order to
survive in a highly competitive marketing field. The owners, in our opinion, should find and employ
someone with the qualifications, expertise, and abilities to assist him in properly using the accounting
system in the administration of the firm in order to ensure that the company has a good management
and finance system. This will provide not just immediate but also long-term benefits.

References
P. (2015, April 22). Accounting as the ‘Language of Business.’ Your Article Library.
https://www.yourarticlelibrary.com/accounting/accounting-as-the-language-of-business/49981
Saylor, D. (n.d.). What is a corporation sole? My Law Questions.
https://www.mylawquestions.com/what-is-a-corporation-sole.htm. Conclusion assignment -
CONCLUSION In conclusion, applying the accounting concept in the business is. (n.d.).
Retrieved from https://www.studocu.com/ph/document/universiti-teknologi-mara/intermediate-
financial-accounting-and-reporting/conclusion-assignment/13368593

Members of the Group #1:

Albaracin, Stefanie L.
Balvez, Krizia Bianca D.
Gallarde, Trisha Mae C.
Murillo, Jingky V.
Pila, Jaymaeca M.
Sayaboc, Abegail G.
Tillo, Aliz Lou Sandra C.

Photos / Screenshots of our Breakout Meeting: