Professional Documents
Culture Documents
By:
Leandro Ador A. Dizon, CPA, MBA
LEARNING OBJECTIVES
⚫ Definition of Accounting
⚫ Legal basis of accounting in the Philippines and related
Authoritative bodies
⚫ Classification of businesses
⚫ Forms of business
⚫ Kinds of Business
⚫ Economic Size of Business
⚫ Accounting assumptions and principles
⚫ The Accounting Equation
⚫ The Elements of the Financial Statements (ALPIE)
What is Accounting?
1. Management accounting
2. Financial Accounting
3. Tax Accounting
Classification of Business
Forms of Business
1. Large enterprise
2. Medium enterprise
3. Small enterprise
4. Micro enterprise
Classification of Business
Kinds of Business
1. Service-concern
2. Merchandising
3. Manufacturing
4. Hybrid
Accounting Assumptions
Accounting Assumption:
Going Concern
Implied assumptions:
Monetary Unit
Accrual
Time Period
Accounting Entity
Accounting Principles
Creditors Owner
The Elements of the Financial Statements
(ALPIE)
Assets = Liabilities + [Proprietorship + (Income – Expenses)]
Assets Debit
Liabilities Credit
Proprietorship Credit
Income Credit
Expense Debit