Fundamentals of Accounting (week 1)

EXERCISE/DRILLS
Name : Ella Blanca R. Buya. Program : 1st year BSA

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3

The main objective of
Accounting is the
Accounting helps accounting are to
language of business.
business measure and summarize
It is used by managers
owner/shareholder to the business activities,
to communicate
make better decision. interpret financial data,
financial and economic
They provide financial and communicate the
information about the
information so those findings to management
company to outside
people will be aware on and other stakeholders
parties such as
what's happening inside to assist them in making
shareholders and
the business. better business
creditors.
decisions.
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Accounting or accountancy

Managers and other
has a long history that can employees who use financial
Financial Accounting used
be traced back to ancient
by external persons to information to confirm past
civilizations. It is said to
make financial decisions results and make
have developed alongside
and its a historical adjustments for future
writing, counting, and
perspective while activities are examples of
money in Mesopotamia, the
cradle of civilization. The Managerial Accounting internal users. External users
ancient Egyptians and used by internal person to are those who use financial
Babylonians developed plan & control an information outside of the
auditing systems, while the organization and its time organization to make
Romans compiled detailed focus is future emphasis. decisions or evaluate an
financial data. entity's performance.

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Balance sheets show what a company owns and what it owes at

a fixed point in time.
Income statements show how much money a company made
and spent over a period of time.
Cash flow statements show the exchange of money between a
company and the outside world also over a period of time.
Financial statement, called a “statement of shareholders’
equity,” shows changes in the interests of the company’s
shareholders over time.