FABM 1 Quarter 1 Module 2

SENIOR
HIGH
SCHOOL
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Fundamentals of
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Accountancy, Business &
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Management I S
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Quarter 1 – Module 2:
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Accounting Concepts and Principles

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Subject to further validation for IP compliance, this material is for first quarter use only. Circulation shall be limited to public schools within the jurisdiction of the Division of Cebu Province. LR-PIPCV
Fundamentals of Accountancy, Business & Management 1 - Grade 11
Alternative Delivery Mode
First Quarter - Module 2
First Edition, 2020
Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for exploitation of
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such work for profit. Such agency or office may, among other things, impose as a
condition the payment of royalties.
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Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
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trademarks, etc.) included in this module are owned by their respective copyright
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holders. Every effort has been exerted to locate and seek permission to use these
materials from their respective copyright owners. The publisher and authors do not
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represent nor claim ownership over them.
Published by the Department of Education S

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Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
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Development Team of the Module

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Writer: Charisa C. Calo

Editor: Dr. Clavel D. Salinas
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Reviewer: Dr. Arlene D. Buot

Moderator: Dr. Arlene D. Buot
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Management Team
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Schools Division Superintendent:

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Dr. Marilyn S. Andales, CESO V

Assistant Schools Division Superintendents:
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Dr. Cartesa M. Perico

Dr. Ester A. Futalan
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Dr. Leah B. Apao

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Chief, CID: Dr. Mary Ann P. Flores

EPS in LRMS: Mr. Isaiash T. Wagas
PSDS/SHS Division Coordinator: Dr. Clavel D. Salinas
Printed in the Philippines by:

Department of Education, Region VII, Division of Cebu Province
Office Address: IPHO Bldg., Sudlon, Lahug, Cebu City
Telefax: (032) 255 - 6405
Email Address: cebu.province@deped.gov.ph
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Fundamentals of
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Accountancy, Business &
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Management I S
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Quarter 1 – Module 2:
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Key Message
For Educators:
Learning is a constant process. Amidst inevitable circumstances, Department of

Education extends their resources and looks for varied ways to cater your needs and
to adapt to the new system of Education as a fortress of Learning Continuity Plan.
One of the probable solutions is the use of Teacher-made Educational Modules in
teaching.
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You are reading the Fundamentals of Accountancy, Business and Management 1-
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Grade 11: First Quarter Alternative Delivery Mode (ADM) Module on “Explain the
varied accounting concepts and principles; Solve exercises on accounting principles as
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applied in various cases” as written and found in the K-12 Most Essential Learning
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Competencies.
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The creation of this module is a combined effort of competent educators from
different levels and various schools of Department of Education-Cebu Province. In S
addition, this module is meticulously planned, organized, checked and verified by
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knowledgeable educators to assist you in imparting the lessons to the learners while
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considering the physical, social and economical restraints in teaching process.

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The use of Teacher-made Educational Module aims to surpass the challenges of

teaching in a new normal education set-up. Through this module, the students are
given independent learning activities, which embodies in the Most Essential Learning
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Competencies based from the K-12 Curriculum Competencies, to work on in

accordance to their capability, efficiency and time. Thus, helping the learners acquire
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the prerequisite 21st Century skills needed with emphasis on utmost effort in
considering the whole well-being of the learners.
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As the main source of learning, it is your top priority to explain clearly on how to
use this module to the learners. While using this module, learner’s progress and
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development should be recorded verbatim to assess their strengths and weaknesses

while doing the activities presented independently in safety of their homes.
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Moreover, you are anticipated to persuade learners to comply and to finish the
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modules on or before the scheduled time.
For the Learners:
As a significant stakeholder of learning, Department of Education researched and

explored on innovative ways to address your needs with high consideration on social,
economic, physical and emotional aspects of your well-being. To continue the
learning process, DepEd comes up with an Alternative Delivery mode of teaching
using Teacher-Made Educational Modules.
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You are reading the Fundamentals of Accountancy, Business and Management 1-
Grade 11: First Quarter Alternative Delivery Mode (ADM) Module on “Explain the
varied accounting concepts and principles; Solve exercises on accounting principles as
applied in various cases” as written and found in the K-12 Most Essential Learning
Competencies.
This module is especially crafted for you to grasp the opportunity to continue
learning even at home. Using guided and independent learning activities, rest
assured that you will be able to take pleasure as well as to deeply understand the
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contents of the lesson presented, recognizing your own capacity and capability in
acquiring knowledge.
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This module has the following parts and corresponding icons:
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WHAT I NEED TO KNOW The first part of the module will keep on
tract on the Competencies, Objectives
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and Skills expected for you to be
developed and mastered.
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WHAT I KNOW This part aims to check your prior
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knowledge on the lesson to take

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WHAT’S IN This part helps you link the previous

lesson to the current one through a short
exercise/drill.
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WHAT’S NEW The lesson to be partaken is introduced in

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this part of the module creatively. It may

be through a story, a song, a poem, a
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problem opener, an activity, a situation or

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the like.
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WHAT IS IT A brief discussion of the lesson can be

read in this part. It guides and helps you
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unlock the lesson presented.

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WHAT’S MORE A comprehensive activity/es for

independent practice is in this part to
solidify your knowledge and skills of the
given topic.
WHAT I HAVE LEARNED This part of the module is used to process

your learning and understanding on the
given topic.
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WHAT I CAN DO A transfer of newly acquired knowledge
and skills to a real-life situation is present
in this part of the module.
ASSESSMENT This activity assesses your level of

mastery towards the topic.
ADDITIONAL ACTIVITIES In this section, enhancement activities
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will be given for you to further grasp the
lessons.
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ANSWER KEY This contains answers to all activities in
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the module.
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At the end of this module you will also find:
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References: Printed in this part is a list of all reliable and valid resources used in
crafting and designing this module.
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In using this module, take note of the fundamental reminders below.

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1. The module is government owned. Handle it with care. Unnecessary marks are
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prohibited. Use a separate sheet of paper in answering all the given exercises.
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2. This module is organized according to the level of understanding. Skipping one

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part of this module may lead you to confusion and misinterpretation.

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3. The instructions are carefully laden for you to understand the given lessons.
Read each item cautiously.
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4. This is a Home-Based class, your reliability and honor in doing the tasks and
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checking your answers are a must.

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5. This module helps you attain and learn lessons at home. Make sure to clearly
comprehend the first activity before proceeding to the next one.
6. This module should be returned in good condition to your teacher/facilitator

once you completed it.
7. Answers should be written on a separate sheet of paper or notebook especially

prepared for FABM 1 subject.
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If you wish to talk to your teacher/educator, do not hesitate to keep in touch
with him/her for further discussion. Know that even if this is a home-based class,
your teacher is only a call away. Good communication between the teacher and the
student is our priority to flourish your understanding on the given lessons.
We do hope that in using this material, you will gain ample knowledge and skills
for you to be fully equipped and ready to answer the demands of the globally
competitive world. We are confident in you! Keep soaring high!
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WHAT I NEED TO KNOW
Good day dear learner!
This module is solely prepared for you to access and to acquire lessons befitted
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in your grade level. The exercises, drills and assessments are carefully made to suit
your level of understanding. Indeed, this learning resource is for you to fully
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comprehend “Accounting Concepts and Principles”. Independently, you are going to
go through this module following its proper sequence. Although you are going to do
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it alone, this is a guided lesson and instructions/directions on how to do every activity
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is plotted for your convenience.
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Here are your learning fundamentals for this module.
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K-12 Most Essential Learning Competencies:
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➢ Explain the varied accounting concepts and principles (ABM_FABM11-

IIIb-c-15); and
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➢ Solve exercises on accounting principles as applied in various cases

(ABM_FABM11- IIIb-c-16)
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Objectives:
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➢ Identify the varied accounting concepts and principles as described;

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➢ Explain the varied accounting concepts and principles;

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➢ Solve exercises on accounting concepts and principles as applied in

various cases; and
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➢ Exhibit sincerity in carrying out lesson tasks.

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WHAT I KNOW
PRE-ASSESSMENT
Unsheathe Your Knowledge!
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A. Read each question below. Then, write the letter of your answer.
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1. Which of the following is considered the language of business?
a. Building Size b. Accounting c. Customers
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2. _________ refers to the amount spent when an item was originally acquired.
a. Acquisition Cost b. Present Value c. Market Value
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3. What refers to the Philippine money?
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a. Dollar b. Philippine Peso c. Euro
4. It refers to the economic benefit earned by the business from its main line of
operations such as the sale of its products or services. S
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a. Asset b. Revenue c. Expense
5. What do you call the costs incurred by the business in the course of generating
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revenues?
a. Liquidation b. Asset c. Expense
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6. Which of the following statements is NOT correct?

a. The personal transactions of the owner of the business may be recorded in
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the accounting books of the business.

b. The business and its owner are separate from each other.
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c. Only B is correct.
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7. Which of the following principles states that bookkeeping and financial recording
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should be free from bias and prejudice?

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a. Materiality Principle c. Objectivity Principle

b. Conservatism Principle
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8. It refers to the process of selling off all assets, paying all liabilities and
distributing remaining funds to shareholders to close the business.
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a. Formation b. Accounting Cycle c. Liquidation

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9. Which of the following terms does NOT refer to revenue?

a. Sales b. Fees c. Capital
10. Which of the following is an incurable cost of a bakery business?
a. Cost of purchasing bread ingredients
b. Salary of the baker.
c. Both a and b
B. Read the following statements carefully. Write T on your answer sheet if the
statement is correct; otherwise, write F.
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________ 11. Every business is owned by only one person.
________ 12. A company may not follow a set of rules in the preparation of financial
statements.
________ 13. The business should wait until it ends operation before it can furnish
financial statements.
________ 14. Financial statements presented to external users are called general
purpose financial statements, while the financial statements presented to internal
users are called special purpose financial statements.
________ 15. The business is separate from its owners.
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Hi, learner! You’ve gone past the first module of Quarter 1 in FABM 1 --
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congratulations! Now, you are hovering and reading the second module which will
take you to various heights as you learn another valuable accounting lesson.
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Get strong hold of what you’ve learned in accounting because you definitely will
need their help as you move forward in this journey. S
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WHAT’S IN
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In the previous module, you have learned about the two classifications of
accounting information users: 1) external, which are parties not connected to the
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company but use to its accounting information to make informed decisions, and 2)
internal, which are parties that make decisions on behalf of the company.
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An accountant performs a series of steps in the preparation of financial reports

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or financial statements that shall be communicated to these users. Apparently, the

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accountant has a lot of financial events to identify, record and summarize!

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You might ask: what are the chances the accountant will not commit a mistake
along these steps?
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Good thing because there are sets of concepts, principles, assumptions and rules
that guide accountants in the practice of their profession so that the financial
statements they produce are accurate, consistent and comparable.
What are these? Go further to find out!
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LIST MAKING
Scratch the Past!
Can you still recall salient points in previous accounting lessons? On your answer
sheet, enumerate what each box below asks.
3 Steps 3 Examples 3 Examples
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in the Accounting of Internal Users of External Users
Process
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WHAT’S NEW
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RULE MAKING
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Think Like a Law Maker!

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During the outbreak of Covid-19 pandemic, our national and local governments
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have crafted and enforced rules that would lead to everyone’s safety. What if you
have the chance of making rules for the Cebuanos to follow during this pandemic?
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What one rule will you implement and why? The activity below is for you to try!
Please do it on your answer sheet.
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LET’S BATTLE COVID-19
YOUR RULE PURPOSE
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ME - NOT ME
Name It, Support It!
In daily life, there are rules to follow. And so with accounting! Now read each
accounting principle or assumption below. Write ME if you think the principle or
assumption matches to the meaning next to it; otherwise, write NOT ME.
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_______________ 1. ECONOMIC ENTITY ASSUMPTION
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Meaning: It requires a business to complete its whole accounting process over a
specific period of time.
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_______________ 2. MONETARY UNIT ASSUMPTION
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Meaning: It assumes that accounting only records business transactions and events
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that can be expressed in terms of money.
_______________ 3. TIME PERIOD ASSUMPTION S

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Meaning: It assumes that the business entity is separate from its owners.
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_______________ 4. OBJECTIVITY PRINCIPLE

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Meaning: It entails that bookkeeping and financial recording be performed without

bias and prejudice.
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_______________ 5. MATCHING PRINCIPLE

Meaning: It requires that revenue be matched with expense, where if a company
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records revenue during an accounting period, the corresponding expense should also
be recorded.
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_______________ 6. GOING CONCERN ASSUMPTION

Meaning: It assumes the business is entity is going to continue existing and operating
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in the indefinite future.

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_______________ 7. COST PRINCIPLE

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Meaning: It states that all assets acquired should be valued and recorded by the
company based on the original cost of acquisition.
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WHAT IS IT
Interact with Text!
Accounting Concepts, Principles and Assumptions

Accounting concepts, principles and assumptions are important because they guide
accountants in the proper and accurate preparation of financial statements. Hence,
internal and external users of financial statements are able to compare the performance
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of a company in different periods, the performance of various companies, and the
performance of a company in relation to the industry.
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GAAP (Generally Accepted Accounting Principles) - Being a set of accounting
concepts, principles, rules and guidelines, GAAP governs the application of accounting
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procedures. It is very useful because it aims to standardize as well as regulate accounting
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definitions, assumptions, and methods.
PAS (Philippine Accounting Standards) and PFRS (Philippine Financial Reporting
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Standards) are other accounting standards adopted in the Philippines. The IFRS
(International Financial Reporting Standards) is an international accounting standard
used as guide in the formulation of PFRS and other standards. S
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UNDERLYING ACCOUNTING ASSUMPTIONS
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1. Accrual Basis Assumption. It requires that revenue is recorded in the period it is

earned, regardless of the time the cash is received or collected. It also requires that
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expense is recognized and recorded at the time it is incurred, regardless of the time that
cash is paid.
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Example:
Cebu Trading is an enterprise that supplies masks, face shields and sanitizing agents
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to small and medium businesses. In April 2020, its customer CC Pharmacy purchased 50
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boxes of mask on credit. Cebu Trading recorded the sales of 50 boxes of mask even
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though it wasn’t paid in cash yet.

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2. Economic Entity Assumption. It assumes that the business entity is separate from its
owners. In that, the transactions of the business are separate from the transactions of its
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owners.
Example:
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Garry is one of the owners of a bike parts store in their municipality. In June, his son
asks him to buy for him a new smart phone. This transaction was personal, so it was not
recorded in the accounting books of the bike parts store although Garry is one of its
owners.
3. Going Concern Assumption. It assumes the business is entity is going to continue
existing and operating in the indefinite future. It supposes that the business will be able
to perform its objectives and commitments and will not liquidate.
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Example:
Good Shoes is a small shop that Ana owns. In January, she paid the monthly rent of
her shop. She also gave the building owner rent payments for February to December in
advance. Because of Going Concern Assumption, the shop’s accountant didn’t record the
advance payment as expense but as an asset from where it can derive future benefits.
After all, the shoe shop will still be operating in the future.
4. Monetary Unit Assumption. It assumes that accounting only records business
transactions and events that can be expressed in terms of money. Here in the
Philippines, businesses measure and report activities in Philippine peso.
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Example:
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Sun Shakes is a small business owned by Luis offering drinks and refreshments. The
business recorded its purchase of two blenders at P10,000 since the transaction can be
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measured in money.
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5. Time-Period Assumption. It requires a business to complete its whole accounting
process over a specific period of time. Artificially, the business can divide its life into
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shorter operation time periods like monthly, quarterly, or annually. Hence, the business
can furnish financial statements monthly, quarterly, or annually.
Example:
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BABY ALL is an online store that sells infant and toddler garments and essentials.
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Every six months, the company prepares financial statements to evaluate its
performance. Even though BABY ALL will continue to operate in the indefinite future, it
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can divide its life into shorter periods.
BASIC ACCOUNTING PRINCIPLES

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1. Cost Principle. It states that all assets acquired should be valued and recorded by the
company based on the actual cash equivalent or original cost of acquisition, not the
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prevailing market value or future value.

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2. Full Disclosure Principle. It states that the financial statements of the company should
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contain sufficient information to allow the stakeholders to draw appropriate judgment

and make informed decisions about the enterprise.
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3. Matching Principle. It requires that revenue be matched with expense, where if a

company records revenue during an accounting period, corresponding expense should
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also be recorded.
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4. Revenue Recognition Principle. It states that revenues are to be recognized as soon as

the goods have been sold (delivered to customers) or as service has been rendered,
regardless of when the money is actually received.
5. Materiality Principle. This states that business transactions that may affect the
decision of a user of financial information are considered important or material, and
thus must be reported properly. Professional judgment is needed to decide whether an
amount is significant or immaterial.
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6. Conservatism or Prudence Principle. It states that if there are two options to choose
from in the valuation of a business transaction, the lower amount should be recorded
and not the higher amount. Apparently, the option of lower amount gives less effect on
net income, or less effect on asset amount.
7. Objectivity Principle. It entails that bookkeeping and financial recording be performed

without bias and prejudice. This is achieved by the business through having impartial
supporting evidence or documentation to business transactions.
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WHAT’S MORE
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MATCHING JOB
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Figure It Out!
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Identify what accounting assumption or principle is described below. Choose
your answer from the banner provided, then write it your answer sheet. S
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___________________ 1. It states that the financial statements of the company
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should contain sufficient information to allow the stakeholders to draw appropriate

judgment and make informed decisions about the enterprise.
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___________________ 2. It states that revenues are to be recognized as soon as the

goods have been sold (delivered to customers) or as service has been rendered,
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regardless of when the money is actually received.

___________________ 3. It states that if there are two options to choose from in the
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valuation of a business transaction, the lower amount should be recorded and not
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the higher amount.

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___________________ 4. It presupposes that the business will continue operating in

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the definite future and will not liquidate its assets

___________________ 5. It requires that expenses are recorded in the same period
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as the revenue related to it.

___________________ 6. It is called as prudence, where the accountant needs to
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exercise care in deciding about the recognition and valuation of an item in the
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accounting records.
___________________ 7. This states that business transactions that may affect the
decision of a user of financial information are considered important or material, and
thus must be reported properly.
___________________ 8. It states that purchased assets of the business are to be
recorded at their purchase cost, not at their market value.
___________________ 9. This assumption places a line of separation between the
personal transactions of the owner and the transactions of the business he owns.
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___________________ 10. In the Philippines, financial transactions are businesses
are recorded in their Philippine peso values.
Cost Principle Time Period Assumption

Revenue Recognition Principle Monetary Unit Assumption
Conservatism Principle Going Concern Assumption
Matching Principle Full Disclosure Principle
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Materiality Principle Economic Entity Assumption
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What I Have Learned
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PAPER ROLLS
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Pick and Explain!

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In this lesson, you have meet face to face with the different accounting concepts,
principles and assumptions. Your task is to pick three principles or assumptions from
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the glass jar and explain them using your own words. Write down your explanation
on your answer sheet following the format on the next page.
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https://clipart-library.com/mason-jar-vector.html
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Accounting Principle or Assumption: Accounting Principle or Assumption:
____________________________ ____________________________
Explanation: Explanation:
____________________________ ____________________________
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____________________________ ____________________________
____________________________ ____________________________
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Accounting Principle or Assumption:
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Explanation:
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____________________________
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What I Can Do
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IMPROVEMENT PLAN
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Transfer Your Knowledge!

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In this lesson, you have learned the different rules that govern the accounting
practice. It is said that the new lessons you learn change your life for the better. Now
come up with a self-improvement plan that applies any of the accounting principles
and assumptions you’ve met in this module. On your answer sheet, copy the table
given and fill it out. An example is provided for your help.
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SELF-IMPROVEMENT PLAN
WILL DO Accounting Assumption/

Principle Applied
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Example:
From now on, I will make it a habit to Time Period Assumption
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make a listing of my everyday to-dos
to organize my activities and check how I
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do daily.
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Assessment
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QUIZ
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Let’s Gauge Your Learning!

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Read each item or question carefully. Write the letter of your answer.
1. It states that if there are two options to choose from in the valuation of a business
transaction, the lower amount should be recorded and not the higher amount.
a. Conservatism Principle c. Objectivity Principle
b. Materiality Principle
2. ___________ requires that revenue and expenses be recorded in the period it is
earned and incurred regardless of when collected and paid, respectively.
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a. Going Concern Assumption c. Economic Entity Assumption
b. Accrual Basis Assumption
3. PAS is an accounting standard adopted in the Philippines. What does it stand for?
a. Philippine Accepted Standards
b. Philippine Accounting Standards
c. Philippine Accounting System
4. Which of the following is likely to be a basis for conservatism principle?
a. Asset valuations do not affect the relevance of a company’s financial
statements.
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b. Values of lower amount have lesser effect on company’s assets, and therefore
make financial reporting more relevant to the actual condition of the company
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c. Both a and b
5. What accounting principle states that if revenue is recorded in an accounting
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period, its corresponding expense should also be recorded in the same accounting
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period?
a. Materiality Principle c. Revenue Recognition Principle
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b. Matching Principle
6. It is the Philippines’ version of the IFRS.
a. Generally Accepted Accounting Principles S
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b. Philippine Financial Reporting Standards
c. Philippine Accounting Standards
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7. Which of the following principle is also known as prudence principle?

a. Conservatism Principle c. Objectivity Principle
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b. Materiality Principle
8. Based on the Time Period Assumption, the business prepares financial statements
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periodically, whether quarterly, annually, or any other intervals.

a. The statement is true. c. The statement is false.
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b. The statement is neutral.

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9. If the financial statement combines both the personal transactions of Mario and
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that of his business, it violates the _________.

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a. Monetary Unit Assumption c. Cost Principle

b. Economic Entity Assumption
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10. Revenues: Earnings;

Expenses: _______
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a. Costs Incurred b. Debts Paid c. Assets Purchased

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11. Lily, the accountant of Z Enterprise, recorded sales of P300,000 in January.

Corresponding to this sale are the salaries of employees amounting to P20,000. What
amount of expense should Lily record?
a. P300,000 c. Lily should not record the expense.
b. P20,000
12. Which of the following statements pertaining to materiality principle is NOT
correct?
a. In the recording of business transactions, professional judgment should be
utilized in determining whether a transaction is material or not.
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b. Material or significant business transactions are those the affect the decisions
of accounting information users.
c. Business transactions involving amounts less than P1,000 are deemed
insignificant.
13. Noel and Nilo run a small business as partners. In the previous week, their
company bought a computer set for P25,000. The same computer set can be
purchased at only P20,000 from the same vendor this week. At what amount should
the computer set be recorded by the accountant of Noel and Nilo’s business?
a. P25,000 b. P20,000 c. P0
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14. What accounting principle supports your answer in number 13?
a. Materiality Principle c. Cost Principle
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b. Objectivity Principle
15. That a company’s financial information should be reported at regular intervals
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suits to what accounting assumption?
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a. Monetary Unit Assumption c. Going Concern Assumption
b. Time-Period Assumption
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ADDITIONAL ACTIVITY
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CASE CHECK
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Make the Final Count!

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Read the sample cases provided below. Solve what is asked for using your
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knowledge about the different accounting assumptions and principles. Write your
answers on your answer sheet.
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Central Traders Inc. is an enterprise owned by Mr. M. It supplies peanut paste and butter.
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◼ In April 2020, its loyal customer Happy Cafe ordered 10 boxes of peanut butter worth
P10,000. Each box contains 20 peanut butter cans. In May, Central Traders Inc. delivered
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the 10 boxes of peanut butter to Happy Cafe who promised to pay in June.
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◼ In July 2020, Mr. M., the owner, bought a brand-new car for his own worth P1,000,000,
and a secondhand delivery van for Central Traders Inc. worth P300,000.
1. In which month should the accountant of Central Traders Inc. record the sales of 10 boxes
of peanut cans to Happy Cafe? Why? At how much?
2. Which of the two purchase transactions should be recorded by the accountant of Central
Traders In.? Why? At how much?
13
_______________________________________________________________________________________________________________________________________________________________
_______________________________________________________________________________________________________________________________________________________________
14
1S
T
Lesson Quiz, pp. 11-12

1. A
GE
2. B
3. B
NE
4. B
R
5. B
6. B
AT
7. A
I
8. A
9. B
10. A
ON
11. B
12. C
13. A
MO
14. C
15. B
DU
LE
S Pre-Assessment, pp. 2-3
1. B
-V
2. A
Matching Job, pp. 8-9
3. B
ER
4. B
1. Full Disclosure Principle
Me-Not Me, p. 5 5. C
SI
2. Revenue Recognition Principle
6. A
3. Conservatism Principle
1. NOT ME 7. C
4. Going Concern Assumption
ON
2. ME 8. C
5. Matching Principle
3. NOT ME 9. C
6. Conservatism Principle
4. ME 10. C
7. Materiality Principle
2.0
5. ME 11. F
8. Cost Principle
6. ME 12. F
9. Economic Entity Assumption
7. ME 13. F
10. Monetary Unit Assumption 14. T
15. T
ANSWER KEY
REFERENCES AND RESOURCES:
Most Essential Learning Competencies (MELCs)
Tugas, F., Salendrez, H., & Rabo, J., Manaligod, M.G., ed. Senior High School
Fundamentals of Accountancy, Business and Management 1 Textbook. Vibal Group
Florendo, J. (2016) Fundamentals of Accountancy, Business and Management 1. Rex
2.0
Book Store
ON
https://www.accountingtools.com/articles/2017/5/9/liquidation
SI
https://clipart-library.com/mason-jar-vector.html
ER
-V
S
LE
DU
MO
I ON
R AT
NE
GE
T
For inquiries or feedback, please write or call:

1S
Department of Education: DepEd-Cebu Province

Office Address: Sudlon, Cebu City, 6000 Cebu
Telefax: (032) 255 - 6405
Email Address: cebu.province@deped.gov.ph
15
_______________________________________________________________________________________________________________________________________________________________

FABM 1 Quarter 1 Module 2

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SENIOR

Accounting Concepts and Principles

Published by the Department of Education S

Development Team of the Module

Writer: Charisa C. Calo

Reviewer: Dr. Arlene D. Buot

Schools Division Superintendent:

Dr. Marilyn S. Andales, CESO V

Dr. Cartesa M. Perico

Dr. Leah B. Apao

Chief, CID: Dr. Mary Ann P. Flores

Printed in the Philippines by:

Accounting Concepts and Principles

Learning is a constant process. Amidst inevitable circumstances, Department of

considering the physical, social and economical restraints in teaching process.

The use of Teacher-made Educational Module aims to surpass the challenges of

Competencies based from the K-12 Curriculum Competencies, to work on in

development should be recorded verbatim to assess their strengths and weaknesses

modules on or before the scheduled time.

For the Learners:

As a significant stakeholder of learning, Department of Education researched and

knowledge on the lesson to take

WHAT’S IN This part helps you link the previous

WHAT’S NEW The lesson to be partaken is introduced in

this part of the module creatively. It may

problem opener, an activity, a situation or

WHAT IS IT A brief discussion of the lesson can be

unlock the lesson presented.

WHAT’S MORE A comprehensive activity/es for

WHAT I HAVE LEARNED This part of the module is used to process

ASSESSMENT This activity assesses your level of

ADDITIONAL ACTIVITIES In this section, enhancement activities

In using this module, take note of the fundamental reminders below.

2. This module is organized according to the level of understanding. Skipping one

part of this module may lead you to confusion and misinterpretation.

checking your answers are a must.

6. This module should be returned in good condition to your teacher/facilitator

7. Answers should be written on a separate sheet of paper or notebook especially

Good day dear learner!

➢ Explain the varied accounting concepts and principles (ABM_FABM11-

➢ Solve exercises on accounting principles as applied in various cases

➢ Identify the varied accounting concepts and principles as described;

➢ Explain the varied accounting concepts and principles;

➢ Solve exercises on accounting concepts and principles as applied in

➢ Exhibit sincerity in carrying out lesson tasks.

Unsheathe Your Knowledge!

6. Which of the following statements is NOT correct?

the accounting books of the business.

should be free from bias and prejudice?

a. Materiality Principle c. Objectivity Principle

a. Formation b. Accounting Cycle c. Liquidation

9. Which of the following terms does NOT refer to revenue?

An accountant performs a series of steps in the preparation of financial reports

or financial statements that shall be communicated to these users. Apparently, the

accountant has a lot of financial events to identify, record and summarize!

What are these? Go further to find out!

Scratch the Past!

3 Steps 3 Examples 3 Examples

Think Like a Law Maker!

LET’S BATTLE COVID-19

YOUR RULE PURPOSE

Name It, Support It!

_______________ 3. TIME PERIOD ASSUMPTION S

_______________ 4. OBJECTIVITY PRINCIPLE