Raniel John V. Gutierrez Mrs. Mary Jane L.

11- JURAN WEEK: 1

FABM

1. Draw the concept of accounting equation.

The Accounting Equation

BALANCE SHEET
Assets Liabilities
Cash 1,000 Accounts Payable 1,000
Accounts Receivable 1,000 Notes Payable 1,000
Inventory 1,000
Land 1,000 Owners Equity
Common Stock 1,000
Retained Earnings 1,000
TOTAL 4,000 TOTAL 4,000

2. Is accounting important to you? Does it affect your daily activities? How?

Yes, accounting is important because it plays a vital role in running a business
because it helps you track income and expenditures, ensure statutory compliance,
and provide investors, management, and government with quantitative financial
information which can be used in making business decisions.