Course Code: ACC 102

Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

Lesson title: Overview of Accounting and Accounting Concepts and Materials:

Principles Module #1
Lesson Objectives:
1. Recognize the use and importance of accounting business References:
decisions. Fundamentals of Financial
2. Familiarize different form of business organization and Accounting and Reporting by Win
operations. Ballada
3. Properly identify the common branches of accounting.

Productivity Tip:
Create a schedule and manage your time wisely.
 Keep a semester and a weekly calendar. On the first day of class, read the course syllabus and enter
all due dates in your calendar, along with reminders for the due dates.
 Commit to studying or participating in your online class and activities.
 Learn the difference between asynchronous and synchronous online courses, and develop strategies
for success in each format.
 Prioritize your work. Make a smart decision about how to best spend your time.

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)

Good day, class! Welcome to ACC 102: Fundamentals of Financial Accounting & Reporting. I will be your
class instructor for this subject. I am ________________________________ and you may call me
__________________. I’m very delighted to be part of your adventure! For today, let me discuss the overall
outline of this subject, including the topics we will discuss for the next periods, grading system, schedules and
policy rules and standards. Let me reminded you as well for some classroom etiquettes we must observe:

ONLINE MEETINGS AND PHYSICAL CLASSROOM ETIQUETTES:

 Be punctual both for online and classroom meetings.
 Wear proper attire.
 Choose a clean and non-distracting location.
 Mute yourself if you experience unavoidable background noise.
 Be ready to take notes and give your full, focused attention.
 Participate fully to all activities.
 Should you have noted concerns about the topic, raise and ask immediately to your
instructor.
 Be more careful with your words when talking with your instructor and classmates.

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

2) Activity 1: What I Know Chart, part 1 (3 mins)

What do you know about Accounting and its significant use in our everyday life? Try answering the questions
below by writing your ideas under the What I Know column. You may use key words or phrases that you think are
related to the questions. Answer the What I learned section after reading the Concept notes

What I Know Questions: What I Learned

Where do we use accounting
information? Provide at least two (2).

How do we differentiate Accounting

from Bookkeeping?

What is partnership?

B. MAIN LESSON
1) Activity 2: Pre-Printed Content Notes (13 mins)

Accounting plays an important role in assisting all forms of economic activity in the various sectors.
Accounting serves as the language of business which is helpful in business decisions. Without
accounting, Business owner or managers would not know which products were successful, and which
decisions were the right ones. With the help of an accounting, they would get an idea of how much to pay
in taxes, capital required for further projects, whether to lease or buy an asset, and so on. Accounting also
helps investors to understand how efficiently their capital or economic resources are being used.

Accounting is a service activity. Its function is to provide quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic decisions.

Types of information provided by accounting: Economic Entities refer to

 Quantitative – in numbers; quantities artificial persons” responsible for
 Qualitative – in words or descriptive form “economic resources (limited supply, can
 Financial – in money values command a price); includes both profit
oriented and not-for profit entities.

Business Entities pertains to entities that

are profit-oriented.

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

Functions or Phases of Accounting

1. Recording – recording business transactions
2. Classifying – sorting or grouping of similar accounts
3. Summarizing – preparing reports (financial statements)
4. Interpreting – analytical function

Users of Accounting Information

➢ Internal users – make decisions directly affecting the internal operations of the enterprise
Examples: Business owners, Corporate Board of Directors, Management, Employees.

➢ External users – make decisions concerning their relationship to the enterprise.

Examples: Investors, government agencies, creditors and suppliers, customers and the public.

FORMS OF BUSINESS ORGANIZATIONS

Sole Proprietorship – consists of one individual doing business called the proprietor. The manager is
usually the owner also. All profits belong to the proprietor.

Partnership – consists of two or more persons who bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing the profits among themselves. The co-owners are
called partners.

Corporation – is an artificial being created by operation of law, having the rights of succession and the
powers, attributes and properties expressly authorized by law or incident to its existence. The owners in a
corporation are called stockholders, evidenced by their holdings of shares of stocks.

Business entities are usually engaged in business operations that increase the value of the enterprise
and earn a profit. These activities are performed daily to generate sufficient revenues. See below table for
the list of business operations type.

TYPES OF BUSINESS OPERATIONS

TYPE ACTIVITY STRUCTURE EXAMPLES

Service Selling people’s time Hiring skilled staff and Accounting, Legal
selling their time

Trader / Buying and Buying raw materials Wholesaler

Merchandising selling product /manufactured goods Retailer
and sell the same
without modification

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

TYPES OF BUSINESS OPERATIONS

TYPE ACTIVITY STRUCTURE EXAMPLES

Manufacturing Designing Taking raw materials Vehicle

products, combining and using equipment assembly Food
components & and staff to and drink
producing convert them into Pharmaceuticals
finished goods finished goods

Raw Growing or Buying blocks of land Farming,

materials production extracting raw and using them to Mining, Oil
materials provide raw materials

Infrastructure Selling the Buying the operating Transport

utilization of assets (typically large (airport operator,
infrastructure assets); airlines, trains,
selling occupancy often ferries,
in combination with buses) Hotels
services

Financial Receiving Accepting deposits and Banks

deposits, lending and paying interest; extend Lending companies
investing money loans to
borrowers and charge
fees and a higher rate of
interest

Insurance Pooling premiums Collecting cash from Insurance

of many to meet many customers; investing companies
claims of a few the money to pay the
losses experienced by a
few customers.

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

BRANCHES OF
ACCOUNTING DESCRIPTION

Auditing Independent examination that ensures the fairness and reliability of the reports
that the management submits to users outside the entity.

Bookkeeping A mechanical task that involves collecting financial data, recording business
transactions and preparing financial statements.

Government Concerned with the identification of the sources and uses of resources consistent
Accounting with the provisions of city, municipal, provincial, and national laws.

Financial Focused on the recording of business transactions and the periodic preparation of
Accounting financial reports. Information is primarily intended for external use.

Management Incorporates cost accounting data and adapts them for specific decisions which
Accounting management may be called upon to make. Information is intended for internal use.

Taxation/Tax Includes the preparation of tax returns and the consideration of the tax
Accounting consequences of proposed transactions or alternative courses of action.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
Getting-To-Know-You Activity

I know that since this is your first day, you are not familiar yet with your classmates. We will be
having various activities for this subject so to help you know them well and assist you with our
activities; I want you to find an ‘accounting buddy’ from the class that will act as your
teammate for the rest of the semester. But I want you to get to know one another before you
continue. So, as our first activity, each one will have a turn to introduce him/ herself. Include in
your introduction what you have learned from the main topic in a short but meaningful
statement. Once done, share with the class a screenshot photo of your team while doing the
discussion.

3) Activity 4: What I Know Chart, part 2 (2 mins)

I am really curious about what you have discussed with your accounting buddy. Please provide in the
below table at least three (3) learning’s that you have shared with each other.

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

4) Activity 5: Check for Understanding (5 mins)

Direction: Each item relates to our topic discussion. Write in the space provided the term that
corresponds to your answer.

_________1. This refers to the business that is owned and controlled by one person.
_________2. Certificate that certifies the ownership of stocks in a corporation.
_________3. Branch of accounting concerned with the identification of the sources consistent
with the provisions of city, municipal, provincial or national laws.
_________4. This can be broadly defined as the branch of accounting that prepares general
purpose financial statements to be used by parties both internal and external to the entity.
_________5. Software development is an example of ________________________ business.
_________6. This form of business is considered as the most common form of business
organization in the Philippines.

A. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
You have accomplished this module, well done! Shade the number of this module that you have finished.

b) Think about your learning by filling up your “My Learning Tracker” below. Write your learning targets, your
scores, learning experience for this session and deliberately plan for our next learning session.

Date Learning Target/Topic Scores Action Plan

What module# did you do? What
What’s the date
were the learning targets? What
today?
activities did you do?
What contributed to the quality of your performance today?
What were your scores
What will you do next session to maintain your performance or
in the activities?
improve it?

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

FAQs

1. Where does accounting started?

- The initial development of accounting where noted way back to ancient Mesopotamia, whre
developments in writing, counting and money and early auditing systems by the ancient Egyptians and
Babylonians was also started. Luca Pacioli, a Franciscan friar and a celebrated mathematician, was
recognized as The Father of accounting and bookkeeping as he was the first person to publish a work on
double-entry bookkeeping, and introduced the accounting field in Italy.

2. What are the activities performed by the business organizations:

- Business activities refer to all the economic activities, whether directly or indirectly related to making
the goods and services available to the consumer and ensure profit earning through customer satisfaction.
Business organizations mainly perform the following business activities: Financing, Investing, and
operating activities.
a. Financing activities – this includes the methods an organization uses to obtain financial resources
from financial markets and how it manages these resources.
b. Investing activities – involve the selection and management of resources that will be used to
develop, produce, and sell goods and services.
c. Operating activities – involve use of resources to design, produce, distribute, and market goods and
services.

3. What are the phases of accounting process?

- In order to be useful, all accounting transactions must be measured in terms of financial
denomination. To measure a business transaction, the accountant must decide when the transaction
occurred (recognition issue), what value to place on the transaction (valuation issue) and how components
of the transaction should be classified (classification issue). To be useful in making financial decision, data
must be classified and summarized, which is achieved through preparation of financial statements and
summarization of effects of all business transactions. The result is then interpreted or analyzed to evaluate
the liquidity, profitability, and solvency of business organization.

KEY TO CORRECTION

Activity 5:
1. Sole Proprietor
2. Shares of stocks
3. Government Accounting
4. Financial Accounting
5. Manufacturing
6. Sole Proprietorship

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