Lesson 1

EXTEND

Name: __________________________ Time of Class: _______________

Differentiate the different types of business organizations as to ownership

and formation/registration.
EVALUATE

Name: __________________________ Time of Class: _______________

1-3 The Activities in Business Organizations.

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4-13 Who are the users of Accounting Information?

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14-16 What are the criteria for accountable events?

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17-22 What are the economic activities and their classifications.

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23-25 What are the types of information provided by accounting.

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26-30 Define Accounting. (5 Pts)

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30-32 Describe the nature of accounting. (2 Pts)

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33.34 Differentiate Bookkeeping and Accounting. (2 Pts)

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35.36 Explain the functions of accounting in business. (2 Pts)

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37.40 Draw the fundamental business model. (4 Pts)
I. Post-Assessment

Name: __________________________ Time of Class: _______________

I. Multiple Choice:
1. This is a process of identifying, recording and communicating economic
information that is useful in making economic decisions.
a. Accounting c. Auditing
b. Bookkeeping d. Marketing

2. Which of the following is not an appropriate description of accounting?

a. Accounting is an information system.
b. Accounting is an exact science rather than an art
c. Accounting is the language of business
d. Accounting is a service activity
3. Which of the following accounting processes comes first ahead of the
others?
a. Interpreting c. Communicating
b. Recording d. Identifying

4. The types of information provided by accounting is/are

a. Quantitative information c. Financial information
b. Qualitative information d. All of the above
5. This essential element of the definition of accounting is the recognition
or non-recognition of business activities as accountable events.
a. Measuring c. Identifying
b. Communicating d. Reporting
6. It is a facet of business that is responsible for building good rapport
with prospective clients and customers
a. Production c. Marketing
b. Management d. Accounting
7. It is a facet of business that is responsible for providing information
that is useful for making economic decisions.
a. Production c. Marketing
b. Management d. Accounting
8. In business, human resource department are involved with
a. Planning c. Staffing
b. Directing d. Organizing
9. He is considered as the father of modern accounting
a. Devin Pascoli c. Fra Luca Pacioli
b. Amatino Manucci d. Jacques Savary
10. The primary responsible for the financial information of an entity are:
a. Stockholders c. Employees
b. Investors d. Management

II. Case

Professor Rodrigo is opening a publishing company to publish and distribute

textbooks throughout the Philippines. He feels this will be a successful
venture because textbooks will be based upon a revolutionary new format of
accounting education. The textbook is updated, well taught, and
comprehensive. Rodrigo has extended an invitation to all his students,
colleagues, and friends to invest in his new business. He is offering shares
for a mere P1,000 each.

Questions:
1. What form of business is Professor Rodrigo proposing?
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2. Briefly explain the advantages of doing business in such a form.

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 Lesson 2

EXTEND

Name: __________________________ Time of Class: _______________

What is the accounting period used by NEMCO?

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EVALUATE

Name: __________________________ Time of Class: _______________

i. Case: Mr. ABC acquired his business for P3 million. The fair market
value of the business is P5 million. Will it be useful if accounting
records were adjusted corresponding to the fair market value amount of
the business? Justify your answer.

ii. Essay

1. What is the basic purpose of accounting.

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2. Differentiate Economic Entity from Business Entity.

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3. List the functions of accounting.

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4. Who are the users of accounting information.

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5. Explain the varied accounting concepts and principles.

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I. Post-Assessment

Identify the following statements:

1. This refers to a set of logical ideas and procedures that guide the
accountant in recording and communicating economic information.

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2. Under this concept, the business is treated separately from its owners.
Therefore, only the transactions of the business are recorded in the
accounting books.

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3. Under this concept, the business is assumed to continue to exist for an

indefinite period of time.

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4. Under this concept, assets are initially recorded at their acquisition

cost.

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5. Under this concept, some costs are initially recognized as assets and
recognized only as expenses when the related revenue is recognized.

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6. This concept is an offshoot of the time period concept.

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7. Under this concept, the accountant observes some degree of caution when
exercising judgements needed in making accounting estimates under
conditions of uncertainty.

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8. Under this concept, the life of the business is divided into series of
reporting period.

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9. This concept guides the accountant when applying accounting principles.

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10. This concept is related to both concepts of materiality and cost-

benefit.

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