5.
Free Sampling – By giving free samples of a
Ways of Promoting Sales
1. Media – Products are advertised through
newspapers circulated either nationwide or
locally, over the radio, and on the television, for
a particular fee. Another form of media
nowadays is the social media. Using the
facilities on the internet, sales promotion can
already be conducted.
2. Window Display – The correct method of this
kind of display is to show particular
merchandise in a such way that will be the
center of attraction.
3. Fashion Show – The latest styles of apparel and
the like may be exposed to the public by hiring
professional models (or amateurs) to parade
before prospective buyers in a carefully-planned
style is show and venue.
4. Flyer – This creative and innovative way of
endorsing a product or service makes use of
appropriate designs posted or distributed to
people in a particular area. The entrepreneur
may hire people to distribute the flyers in order
to reach wider scope.
particular merchandise to be introduced to the
public, the customers are given an opportunity
to judge the quality of the product promoted.
6. Popular Recall – Another way of attracting
customers is through songs, or popularly called
commercial jingles. By composing original
jingles associated with the product, potential
customers may easily recall the name of the
product or service.
7. Calling Cards and Tarpaulin – Calling cards
may be given to potential customers in order for
them to easily reach the business when they
need to. Another way of promotion is by the use
of tarpaulin. It is bigger than flyers and could be
posted or installed in areas that can easily for
noticed.
8. Billboards – Although very expensive,
billboards posting is one of the most effective
ways in promoting products and services. It can
reach a wide range of audience and is fixed in
one place. It should be place in a busy area
where people might recall the name of the brand
being promoted.
9. House to House – Entrepreneur may hire
people who will endorse the merchandise to a
house to house or otherwise known as knock-
on-your-door technique.
10. Sale – There are several products and services
that need to reach the market shrouded by
competitions. To introduce a product or
encourage people to try it, entrepreneur resort to
cutting the price tag of products.
7. Cash-on-Delivery. (COD). The customer will
only pay in cash upon the delivery of the
merchandise to his home.
8. Installment Sale. The customer agrees to pay a
certain part of the amount of the merchandise at
a specified period of time until the full amount
is paid.

11. Quality and Quantity Discount – To attract

more customers, businesses sometimes offer
discounts for bulk purchases.

BASIC ACCOUNTING
ACCOUNTING
 Accounting is a service activity. It functions to
provide quantitative information. Primarily
financial in nature about economic entities that
12. Personal Salesmanship – Personnel involved in
are intended to be useful in making economic
promoting the merchandise must always have in
decisions with reasoned choices among
mind the welfare of the customers. As such,
alternative courses of action.
courtesy and effective service are needed.
Quantitative Information
 Balance Sheet. Is the statement of financial
condition or financial position that gives the
user information about the condition of the
business enterprise as of the given period.

TYPES OF SELLING
1. Cash-take Sale. The customer pays cash for the
merchandise and takes it with him.
2. Cash-send or Cash-delivery Sale. The
customer pays cash for the goods and the store
will deliver or sends the merchandise into
his/her home address.
3. Charge-take Sale. The merchandise is charged
to the customer and the latter takes the
merchandise with him/her.
 Income Statement. Is the statement of the
4. Charge-send or Charge deliver. The
results of operation. It is the statement that give
merchandise is to the customer and is delivered
information to the users the idea whether the
to the home address.
business enterprise makes profit or losses for a
5. Part Cash, Part Charge Sale. The merchandise period of time.
is paid in half and the balance is charged to the
customer.
6. Lay-Away or Will-Call Sale. The customer
orders and requests the store to lay it away. The
customer will hand down payment but the item
will stay in the store until he pays the item in
full amount.
 Statement of a Cash Flows. Is the statement
that gives information to the users about the
cash uses of the business enterprise during a
given period of time.
 It is the process of recording, classifying,, and
summarizing, in a significant manner in items.
Recording – means the writing down of business
transactions in the official book of accountant.
Classifying – means sorting of business transactions
to their significant accounts.
Summarizing – is the summing up of the business
transactions recorded in the book of accounts.
Bookkeeping – is defined as the systematic and
chronological recording of business transaction,
observing therein the fundamentals principle of
accounting.
ITEMS
 Money – means cash
 Transaction – the exchange of values.
 Events – is the act of happening. In accounting
an event must have an impact in the business
enterprise. The impact could either be positive
or negative.
Accounting Process
 Collection of Business Documents as
Transactions occurred. These business
documents will serve as pieces of evidence for a
finished transaction.
 Recording in the Journal Book. Journal book
of original entry. It is the book where
transaction are first entered.
 Posting. After all transactions for the month are
recorded, a total will be made per account.
 Preparation of Trial Balance. The trial balance
can be prepared by getting the net balance of an
individual account. If the trial balance statement
is balance, it means the posting process was
properly made.
 Preparation of Adjustment Entries. An
adjusting entry is necessary to update an
account or correct an error.
 Preparation of Working Paper. Working paper
is an accountant’s scratch paper, but as much as
possible, it must be neatly done.
 Preparation of Financial Statement. This
includes the income statement, balance sheet
and the statement of cash flows.
Types of Business Organization
 Service Concern – This type of business
organization that renders services to their
customers to earn an income.
 Trading Concern – Also called as
Merchandising concerns. This type of business
organization usually buys merchandise and sells
to their customer.
 Manufacturing Concern – This type of
business organization usually buys raw
materials and converts them into finished
products and are sold in the market.
Forms of Business Organization
 Sole/single proprietorship. The ownership of
the business enterprise is only one
 Partnership. The ownership of the business
enterprise ranges from two or more persons.
 Corporation. The ownerships of the business
enterprise ranges from five to more persons.
Users of Financial Statement
 Business Owner. The owner of the business
enterprise. They are very particular to what has
happened in their business venture and they can
only know it by providing a copy of its financial
statement.
 Business Manager. Since the work of
managers is to direct and control the business
enterprise, they really need the financial
statements as reference for their really daily
routine business decision making.
 Government. The government is also a user of
financial statement because it is very particular
with the correct payment of taxes.
 Potential Investors. They usually check first the
soundness of the business enterprise before they
plan to invest their money and to assure a fair
return of investment as well.
 Creditors. They check on the paying capacity of
the customers first to minimize doubtful or
uncollectible accounts.
 Labor Unions. They need the financial
statements of the company as their basis to
demand for increase in the salary of their union
members.
 Budget Officers/Accountants/Auditors. Budget
offers prepare the company budget and they
need its financial statements so they can know
the progress of its operation as compared to its
plan.
Discussion:
Accounting
- it is a systematic and comprehensive recording
of financial transactions pertaining to a business
- Preparing of financial statement
- Balance sheet
 Asset
 Liabilities
 Owner’s equity
- Income Statement
 Revenues – fees earned from providing
services and the amount of merchandise
sold.
 Expenses – is the money spent or cost
incurred in an entity’s efforts to generate
revenue.
Net income – total earnings
5 Elements of Accounting
1. Assets - things that are resources owned by a
company.
2. Liabilities – Current obligation
3. Owner’s Equity or Capital – represent
owners investment in the business (bagay na
pinuhunan)
4. Revenues
5. Expenses