FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

ACTIVITY #1

Dhana Mae C. Suguitan 11-Fabella

1. Accounting is a process, a cycle. It involves various steps that are firm and
must follow orderly. Steps shouldn't be tampered by anyone at any time. Fail to
perform with any step, means you can't proceed to the next step. Thus, comply
exactly the steps, don't miss anything, do everything, "STEP BY STEP".
Complete all the steps accurately with their proper arrangements just to begin
again the process from the start. Accounting is a cyclical process after all.

2. Accounting is financial in nature. It serves as barometer for ascertaining

the financial health of a business. Its function is to provide quantitative
information such as financial transactions that is intended to be valuable for the
various users in making decisions and tackling business matters. It uses a
specific type of report which called ‘Financial Statements’ that convey the
business activities and the financial performance of a company. It plays a big role
in giving a vivid concept with regards to the net profit earned and loss suffered on
account of carrying the business.