WHAT IS ACCOUNTING

for Fundamentals of Accountancy,

Business and Management 1
Senior High School (ABM)
Quarter 1 / Week 1.a

1
 FOREWORD

This Self-Learning Kit for Fundamentals of Accounting, Business

and Management explores all concepts necessary in the Senior High
School Accountancy, Business and Management Track.

This gives students a strong foundation which will be used

throughout their Accounting studies.

It is aligned with the BEC of the Department of Education

following the prescribed MELCs (Most Essential Learning
Competencies.

It has the following features proven to be valuable aids to

learning Accounting even at home.

What happened

This section contains pre-activities like review of the prior

knowledge pertaining to accounting.

What I Need To Know (Discussion)

This section includes the definition of accounting.

What I have Learned (Evaluation/Post Test)

The exercises contained in this section are guaranteed to build

comprehension, skills, and competence. These serve as a diagnostic
tool to identify the learners’ areas of strengths and difficulties.

2
 OBJECTIVES:
K: Define Accounting;
S: Discuss the usefulness of accounting; and
A: Appreciate the usefulness of accounting in real situation.

LEARNING COMPETENCY:
Defining accounting. ABM_FABM11-IIIa-1
I. What Happened
PRE-TEST:
Read each item carefully and use your notebook to write your answers.

True or False

1. A business transaction is the occurrence of an event or of a condition that

must be recorded.
2. Summarization reduces the effects of numerous transactions into useful
groups or categories.
3. Recording is very important in accounting.
4. Accounting is and art and a discipline.
5. Accounting deals with information and transactions

II. What You Need to Know

Accounting is the art of recording, classifying and summarizing in a
significant manner and in terms of money, transaction and events which
are, in part at least of a financial character, and interpreting the results
thereof.

ACCOUNTING

As an Art As a Process

3
DISCUSSION

a) Do your parents ask how you spend your allowance every day?
b) When deciding between buying a bottle of soft drinks or fruit juice, what
is the basis of your decision? Do you compare the prices of both before
making a decision?

c) When going home, do you sometimes choose to walk from school rather
than ride on a tricycle because you want to save?

The answer of these questions relate with money, whether you spend or you
save. These are what we call as monetary decisions, so it involves accounting.

Classifying – This involves selecting economic events that are relevant to a

particular business transaction. The economic events of an organization are
referred to as transactions.

Examples of economic events or transactions –

In a bakery business:

• sales of bread and other bakery products

• purchases of flour that will be used for baking
• purchases of trucks needed to deliver the products

RECORDING – This involves keeping a chronological diary of events that

are measured in pesos. The diary referred to in the definition are the journals and
ledgers.

SUMMARIZING – This occurs through the preparation and distribution of

financial and other accounting reports.

4
III. What Have I Learned
Read each item carefully and use your notebook to write your answers.
True or False

1. Accounting is applicable to businesses rendering services because

accounting is a service business.
2. Financial statements provide information to the public.
3. Financial statements are outputs of the accounting process.
4. There is only one acceptable definition of accounting
5. Because accounting is systematic, definite techniques and their
application require particular skills and expertise.

5
 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

FAY C. LUAREZ, TM, Ed.D., Ph.D.

OIC - Assistant Schools Division Superintendent
Acting CID Chief

ADOLF P. AGUILAR
OIC - Assistant Schools Division Superintendent

NILITA L. RAGAY, Ed.D.

OIC - Assistant Schools Division Superintendent

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ARNOLD R. JUNGCO
Education Program Supervisor – (SCIENCE & MATH)

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

MARIA SOLEDAD M. DAYUPAY

Writer

RADHIYA A. ABABON
Lay-out Artist
_________________________________

ALPHA QA TEAM
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO
DIDITH T. YAP

BETA QA TEAM
ELIZABETH A. ALAP-AP
EPIFANIA Q. CUEVAS
NIDA BARBARA S. SUASIN
VRENDIE P. SYGACO
MELBA S. TUMARONG
HANNAHLY I. UMALI

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible
learning modality to the teachers and learners of the Division of Negros Oriental. The contents of this module are
carefully researched, chosen, and evaluated to comply with the set learning competencies. The writers and
evaluator were clearly instructed to give credits to information and illustrations used to substantiate this material.
All content is subject to copyright and may not be reproduced in any form without expressed written consent from
the division.

6
 REFERENCES
Licuanan, P., et al. 2016. Teaching Guide for Senior High School
Fundamentals of Accountancy, Business, and Management 1, pp. 2-3.
DepEd: Commission on Higher Education

Ballada, W., et al. 2010. Basic Accounting Made Easy, pp. 1-14. Domdane
Publishers & Made Easy Book

7
 SYNOPSIS AND ABOUT THE AUTHOR

SYNOPSIS
This SLK (Self-Learning Kit) is about the definition of accounting. It
includes topics that involve money matters of which may help you to
understand easily.
As you go over the discussion and exercises, you will appreciate its
importance of knowledge in accounting in regards to money matters
and you will realize that you have been doing it all along.
Find enjoyment in learning this SLK and go over the discussion and
examples if you have not yet mastered a concept.

AUTHOR

Maria Soledad M. Dayupay, graduated BS Accountancy

at Foundation University and took up 40 units of BS
Education at Negros College has been connected with
the Department of Education since 2011 as a Senior
Bookkeeper at Tambo National High School. December
2014 was a Secondary School Teacher at Ayungon
Science High School and in 2016 the start of the Senior
High School was assigned at DLANHS-SHS, presently is
now assigned at Ayungon National High School.