FABM1-11 q3 Mod1 Introductiontoaccounting v5

Senior High School
Fundamentals of
Accountancy, Business and
Management 1
Quarter 3 - Module 1:
Introduction to Accounting
Fundamentals of Accountancy, Business and Management 1 - Senior High School
Alternative Delivery Mode
Quarter 3 - Module 1: Introduction to Accounting
Second Edition, 2021
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11
Fundamentals of
Accountancy, Business
and Management 1
Quarter 3 - Module 1:
Introduction to Accounting
Icons of this Module
What I Need to This part contains learning objectives that

Know are set for you to learn as you go along the
module.
What I know This is an assessment as to your level of

knowledge to the subject matter at hand,
meant specifically to gauge prior related
knowledge
What’s In This part connects previous lesson with that
of the current one.
What’s New An introduction of the new lesson through

various activities, before it will be presented
to you
What is It These are discussions of the activities as a

way to deepen your discovery and under-
standing of the concept.
What’s More These are follow-up activities that are in-

tended for you to practice further in order to
master the competencies.
What I Have Activities designed to process what you

Learned have learned from the lesson
What I can do These are tasks that are designed to show-

case your skills and knowledge gained, and
applied into real-life concerns and situations.
Table Of Contents
Introduction ---------------------------------------------------------------------- 1
Pre-test ---------------------------------------------------------------------- 3
Lesson 1 ---------------------------------------------------------------------- 5
Post-test ---------------------------------------------------------------------- 12
Lesson 2 ---------------------------------------------------------------------- 14
Post-test ---------------------------------------------------------------------- 20
Answer Key ---------------------------------------------------------------------- 23
Reference ---------------------------------------------------------------------- 26
What I Need To Know
For the Learners
This is an introductory course in accounting, business and management

data analysis that will develop your appreciation of accounting as language
of business and an understanding of basic accounting concepts and
principles that will help you analyze business transactions.
“Is accounting important to you?” Accounting delivers financial
information to different users through financial statements. It gives business
owners the chance to analyze the overall efficiency and effectiveness of
their business operations.
Module Content
This module in Fundamentals of Accountancy, Business and Management 1

for the 21st century learners is designed to make learning more engaging and
meaningful to ABM Senior High School learners in the flexible and blended learning
environments. Further, the module provides specific examples on how accounting is
applied in making business decisions . One of the example is service businesses
wherein they provide intangible goods or services to customers. Services usually
generates profit by charging labor and other services rendered to customers.
Meaningful activities are given in the form of worksheets, assignments and

online or virtual activities which allow learners to work at their own pace. As you go
along, you will know the definition, nature and history or origin of accounting. This
module will let you know the external and internal users of financial information. Here,
you are going to solve exercises and problems on the identification of users of
information, type of decisions to be made, and type of information needed by the
users. In addition, you will also cite users of financial information, and identify whether
they are external or internal users.
Learning is fun! So enjoy your journey as you unfold the most interesting and
worthwhile activities in accounting.
1
General Instructions
To do well in this module, you need to remember the following:
1. Read texts carefully;
2. Answer questions with all honesty;
3. Review your answers;
4. Follow instructions given;
5. Do the tasks given and do not delay in submitting requirements;
6. Feel free to communicate with your teacher;
7. Remember to review every time you are done answering the activities; and
8. Have fun as you learn.
2
What I Know
Instructions: Choose carefully the letter that best describes your answer.
Write your answer in the space provided before the number.
____1) The selecting of economic events that are relevant to a particular business
transaction is called __________.
a.Recording c. Identifying
b. Measuring d. Classifying
____2) Keeping a chronological diary of events that are measured in pesos is
___________.
a. Verifying c. Interpreting
b. Recording d. Summarizing
____3) Occurs through the preparation and distribution of financial and other
accounting reports is ___________.
a. Measuring c. Recording
b. Classifying d. Communicating
____4) Accounting provides assistance to decision makers by providing them
financial reports that will guide them in coming up with sound decisions is
called _____________.
a. A process c. An information system
b. A service activity d. An art and a discipline
____5) Collects processes and communicates financial information of any entity
is ______________.
____6) The method of performing any specific job step by step according to
the objectives or targets is ____________.
____7) Dealt with commercial transactions at the time of Mesopotamia such as
listing of accounts receivable and accounts payable is during _________.
a. The cradle of civilization c. The industrial revolution (1760-1830)
b. French revolution (1700’s) d. 14th century double-entry bookkeeping
____8) Mass production and the great importance of fixed assets were given
attention during the period of ____________.
a.The cradle of civilization c. The industrial revolution (1760-1830)
b.French revolution (1700’s) d. 14th century double-entry bookkeeping
____9) The most important event in accounting history is generally considered to
be the dissemination of double entry bookkeeping by Luca Pacioli
happened during _______________.
____10) The thorough study of accounting and development of accounting theory
began during the period of ______________.
3
____11) These are the users wherein accounting information is used for analyzing
viability and profitability of their investments; ____________.
a. Management c. Creditors e. Employees
b. Owners d. Investors
____12) These users needs the information because they are concerned with the risk
inherent in investing and the returns or invested decisions are the ________.
____13) This user in which accounting is of great assistance to management for
planning, controlling, and decision making process is the __________.
____14) These users who is interested in accounting information because it
enables them to determine the credit worthiness of the business or decide
whether to extend credit or not are the ____________.
____15) These users who wants to find out the financial health,amount of sales and
profitability of business to determine their job security are the ____________.
4
These are the competencies included in this lesson:
 Define accounting (ABM_FABM11-IIIa- 1)
 Describe the nature of accounting (ABM_FABM11-IIIa-2)
 Narrate the history/origin of accounting (ABM_FAB M11- IIIa-4)
What’s New
Activity 1
Directions: Explain the three highlighted words in the infographic.

Write your answer on the lines provided below.
E-BOOK
Carlsberg S. Andres, Arthur P. Barrido, Jr., and Christopher B. Honorario. (2016). Fundamentals of Accountancy, Business, and Management 1. Commission
on Higher Education.
___________________________________________________________________________
5
What Is It
Definition of Accounting
It is a systematic process of identifying, recording, measuring, classifying,

verifying, summarizing, interpreting and communicating financial information. It
reveals profit or loss for a given period, and the value and nature of a firm's assets,
liabilities and owners' equity.
In a practical sense, the main objective of financial accounting is to accurately
prepare an organization's financial accounts for a specific period, otherwise known as
financial statements.
Example, if the company’s transactions are being tracked then Ms. Ken
(investor) will know if the money she invested is still there.
P100,000 (initial investment)

P70,000 (used to buy printers and pay the bills)
P30,000 (balance cash left)
P50,000 (collection from costumers (1month)
P30,000+ P50,000= 80,000 overall balance cash
https://publicdomainvectors.org/no/gratis-vektorbilder/Inspisere-b%C3%B8ker/69
444.html.
Accounting is commonly called the “Language of Business” wherein it

delivers financial information to different users through financial statements.
Example:
Ms. Sweet started a business. She invested P100,000 (personal money).
After one month Ms. Sweet wanted to know how much the business made, and if the
money she invested is still there.
The American Institute of Certified Public Accountants (AICPA) defines

accounting as:
“An art of recording, classifying and summarizing in a significant manner and
in terms of money transaction and events which are in part of at least of financial
character, and interpreting the result thereof.”
This definition will provide a better understanding of accounting in terms of

the following:
>Accounting is considered an art and a science;

>Accounting involves interconnected phases;
>Accounting is concerned with transactions and events having financial
character;
>In accounting, business transactions are expressed in terms of money; and
>Accounting interprets the result of financial statement.
6
Accounting provides answers to the following questions:
-How much income does the company make?
-How much does the company owe to the creditors?
-Is this a good investment?
Accounting information gives business owners the chance to analyze the

overall efficiency and effectiveness of their business operations.
Nature of Accounting
According to Accounting Theory ;

(http://accountingtheory.weebly.com/nature-and-scope-of-acc
ounting.html): “Accounting is a systematic recording of
financial transactions and the presentation of the related
information to appropriate persons.”
https://www.designtrends.com/graphic-web/icons/human-icons.html.
Based on this definition we can derive the following basic features of accounting:
Accounting is a service activity.
Accounting provides assistance to decision makers by providing them financial

reports that will guide them in coming up with sound decisions.
Accounting is a process.
A process refers to the method of performing any specific job step by step
according to the objectives or targets. Accounting is identified as a process, as it
performs the specific task of collecting, processing and communicating financial
information. In doing so, it follows some definite steps like the collection, recording,
classification, summarization, finalization, and reporting of financial data.
Accounting is both an art and a discipline.
Accounting is the art of recording, classifying, summarizing and finalizing financial

data. The word ‘art’ refers to the way something is performed. It is behavioral
knowledge involving a certain creativity and skill to help us attain some specific
objectives. Accounting is a systematic method consisting of definite techniques and
its proper application requires skill and expertise. So by nature, accounting is an art.
And because it follows certain standards and professional ethics, it is also a
discipline.
Accounting deals with financial information and transactions.
Accounting records financial transactions and data, classify these and finalize
their results given for a specified period of time, as needed by their users. At every
stage, from start to finish, accounting deals with financial information and financial
information only. It does not deal with non-monetary or non-financial aspects of such
information.
7
Accounting is an information system.
Accounting is recognized and characterized as a storehouse of information. As a

service function, it collects processes and communicates financial information of any
entity. This discipline of knowledge has evolved to meet the need for financial
information as required by various interested groups.
History of Accounting
Accounting is as old as civilization itself. It has

evolved in response to various social and economic
needs of men. Accounting started as a simple recording
of repetitive exchanges. The history of accounting is
often seen as indistinguishable from the history of
finance and business. Following is the evolution of
accounting:
The Cradle of Civilization

Around 3600 B.C., record-keeping was already
https://circa-navigate.corsairs.network
/an-uncollected-history-of-feedback-648dff27d94a.
common from Mesopotamia, China and India to
Central and South America. The oldest evidence of this practice was the “clay
tablet” of Mesopotamia which dealt with commercial transactions at the time such as
listing of accounts receivable and accounts payable.
14th Century - Double-Entry Bookkeeping

The most important event in accounting history is generally considered to be
the dissemination of double entry bookkeeping by Luca Pacioli (‘The Father of
Accounting’) in 14th century Italy. Pacioli was much revered in his day, and was a
friend and contemporary of Leonardo da Vinci. The Italians of the 14th to 16th
centuries are widely acknowledged as the fathers of modern accounting and were the
first to commonly use Arabic numerals, rather than Roman, for tracking business
accounts. Luca Pacioli wrote Summa de Arithmetica, the first book published that
contained a detailed chapter on double-entry bookkeeping.
French Revolution (1700s)

The thorough study of accounting and development of accounting theory
began during this period. Social upheavals affecting government, finances, laws,
customs and business had greatly influenced the development of accounting.
The Industrial Revolution (1760-1830)

Mass production and the great importance of fixed assets were given
attention during this period.
19th Century – The Beginnings of Modern Accounting in Europe and America

The modern, formal accounting profession emerged in Scotland in 1854
when Queen Victoria granted a Royal Charter to the Institute of Accountants in
Glasgow, creating the profession of the Chartered Accountant (CA). In the late 1800s,
chartered accountants from Scotland and Britain came to the U.S. to audit British
8
investments. Some of these accountants stayed in the U.S., setting up accounting
practices and becoming the origins of several U.S. accounting firms. The first national
U.S. accounting society was set up in 1887. The American Association of Public
Accountants was the forerunner to the current American Institute of Certified Public
Accountants (AICPA).
In this period rapid changes in accounting practice and reports were made.
Accounting standards to be observed by accounting professionals were promulgated.
Notable practices such as mergers, acquisitions and growth of multinational
corporations were developed. A merger is when one company takes over all the
operations of another business entity resulting in the dissolution of another business.
Businesses expanded by acquiring other companies. These types of transactions
have challenged accounting professionals to develop new standards that will address
accounting issues related to these business combinations.
The Present - The Development of

Modern Accounting Standards and
Commerce
The accounting profession in the 20th
century developed around state
requirements for financial statement audits.
Beyond the industry's self-regulation, the
government also sets accounting standards,
through laws and agencies such as the
Securities and Exchange Commission
https://pixy.org/5745553/.
(SEC). As economies worldwide continued to globalize, accounting

regulatory bodies required accounting practitioners to observe International
Accounting Standards. This is to assure transparency and reliability, and to obtain
greater confidence on accounting information used by global investors.
Nowadays, investors seek investment opportunities all over the world. To
remain competitive, businesses everywhere feel the need to operate globally. The
trend now for accounting professionals is to observe one single set of global
accounting standards in order to have greater transparency and comparability of
financial data across borders.
What’s More
Activity 2
Directions: Go back to the unanswered question in the introduction of this topic.

Write your answer on the lines provided below.
Is accounting important to you? Does it affect your daily activities? How?
9
Short Essay Rubric:
Unsatisfactory Needs Satisfactory Outstanding
Improvement
0 pts 5 pts 15 pts 25 pts
Content & Unsatisfactory Needs Satisfactory Outstanding
Development Improvement
- Content is - Content is - Content is
incomplete. - Content is not accurate and comprehensive,
- Major points comprehensive persuasive. accurate, and
are not clear. and /or - Major points persuasive.
-Specific persuasive. are stated. - Major points
examples are - Major points - Responses are are stated
not used. are addressed, adequate and clearly and are
but not well address topic. well supported.
supported. - Content is - Responses are
- Responses are clear. excellent, timely
inadequate or -Specific and address
do not address examples are topic.
topic. used. - Content is
-Specific clear.
examples do not -Specific
support topic. examples are
used.
Organization & Unsatisfactory Needs Satisfactory Outstanding
Structure Improvement
- Organization - Structure is -Structure of the
and structure - Structure of the mostly clear and paper is clear
detract from the paper is not easy to follow. and easy to
message. easy to follow. - Transitions are follow.
- Writing is - Transitions present. - Transitions are
disjointed and need - Conclusion is logical and
lacks transition improvement. logical. maintain the
of thoughts. - Conclusion is flow of thought
missing, or if throughout the
provided, does paper.
not flow from the - Conclusion is
body of the logical and flows
paper. from the body of
the paper.
Grammar, Unsatisfactory Needs Satisfactory Outstanding
Punctuation & Improvement
Spelling - Paper contains - Rules of - Rules of
numerous - Paper contains grammar, grammar,
grammatical, few usage, and usage, and
punctuation, and grammatical, punctuation are punctuation are
spelling errors. punctuation and followed with followed;
spelling errors. minor errors. spelling is
Spelling is correct.
correct.
10
What I Have Learned
Activity 3
Instructions: Answer the questions according to your own understanding. Write your
answer on the lines provided below.
1. Define Accounting.
2. Give examples of decisions or questions that can be supported by accounting

information.
What I Can Do
Activity 4
Instructions:
1. You will create an infomercial on the nature and evolution/history of
accounting.
2. Be Creative.
3. Submit your video presentation only in one file through cellphone, usb or any of
your convenience.
Guidelines:
Use any media platform at your convenience
Maximum of 2 minutes
You can use Mother Tongue, Tagalog or English as language
Wear casual attire
https://www.dreamstime.com/royalty-free-stock-photos-tablet-computer- https://www.ebay.com/c/24011372739.
smartphone-newspapers-creative-business-corporate-work-concept-pc-
modern-black-glossy-touchscreen-news-image32753338.
11
Self-Check!
Great job! You have completed Lesson 1 successfully! Before going to the next
lesson, check the icon that best shows your learning experience.
I have understood the lesson well, and I can even

teach what I learned to others.
https://www.focusjunior.it/scuola/italiano/analisi-logica/complementi-cosa-sono-cosa-servono/.
I have understood the lesson, but there are still other

things that I need to review and relearn.
https://pxhere.com/en/photo/1450659.
I need to do additional work to be able to master the

If you checked the first icon, you are ready for lesson 2.
lesson. I need help in some tasks.
https://www.jing.fm/iclipt/Jxhiw/.
If you have checked the first icon, you can proceed to the next lesson. If you
have checked the second icon, you need to review the things that you need to relearn.
If you have checked the third icon, it would be best if you read more and ask help
from your teacher, parents or peers in clarifying the lessons that you find it difficult.
Be honest so that you will truly improve.
Assessment
Let us check how much you learned from this module’s coverage.
Fill in the blank: Write your answer in the blank provided before the number.
_____________1) Refers as the economic events of an organization.
_____________2) The art of recording, classifying, summarizing and finalizing

financial data.
_____________3) Refers to the method of performing any specific job step by step
according to the objectives or targets.
12
_____________4) This involves keeping a chronological diary of events that are
measured in pesos.
_____________5) Refers to the way something is performed.
_____________6) The oldest evidence practice of Mesopotamia which dealt with

commercial transactions.
_____________7) The father of accounting.
_____________8) The first book published that contained a detailed chapter on

double-entry bookkeeping.
_____________9) Mass production and the great importance of fixed assets were
given attention during this period.
_____________10) In this period, rapid changes in accounting practice and reports

were made.
13
These are the competencies included in this lesson:
 Define external users and gives examples (ABM_FAB M11- IIIa-7)
 Define internal users and give examples (ABM_FA BM11- IIIa-8)
What’s In
Activity 1. Review
Directions: Complete the statement. Write your answer on the lines provided below.
In the previous lesson I learned that ______________________________________

___________________________________________________________________
___________________________________________________________________
What’s New
Activity 2
What business would you want to enter into?

Sample businesses:
https://199jobs.com/jobs/admin-office/provide-you-200-buy-and-sell-groups/.
https://teletype.in/@kdmarketresearch/rkNaR5xlL.
https://www.gettyimages.com/detail/photo/empty-female-boutique-royalty-free-image/157586327.
http://southernpineconstruction.com/project-list/item/114-new-mfs-4-sse-installation?tmpl=component
14
Instructions: Choose one of any business Write your answer on lines provided.
Question 1- If you would like to own a business, what kind of business would you
endeavor, and what do you want to know about the business?
Question 2- What possible decisions can accounting support?
________________________________________________________________________
What Is It
Accounting
- is the language employed to communicate financial information of a concern to
such parties.
Slavin and Reynolds

Accounting is the discipline that provides information on which external and
internal user’s of the information may base decisions that result in the allocation of
economic resources in society.
Who uses accounting data or information?

There are two broad categories of users of financial information: internal and
external users.
INTERNAL USERS
Internal users of accounting information are those
individuals inside a company who plan, organize, and run the
business. These users are directly involved in managing and
operating the business. These include marketing managers,
production supervisors, finance directors, company officers and
owners.
What information will user need that can be answered by

accounting?
Internal users (Primary Users) of accounting information include

the following:
https://de.wikipedia.org/wiki/Datei:Shokunin_businessman.svg.
15
Management
Information need: income/earnings for the period, sales, available cash, production
cost
Decisions supported: analyze the organization's performance and position, and take
appropriate measures to improve the company results, sufficiency of cash to pay
dividends to stockholders; pricing decisions
Employees
Information need: profit for the period, salaries paid to employees
Decisions supported: job security, consider staying in the employ of the company or
look for other employment opportunities
Owners
Information need: profit or income for the period, resources or assets of the
business, liabilities of the business
Decisions supported : considerations regarding additional investment, expanding the
business, borrowing funds to support any expansion plans.
Accounting information is presented to internal users usually in the form of
management accounts, budgets, forecasts and financial statements. This information
will support whatever decision of the internal users.
EXTERNAL USERS
External users are individuals and
organizations outside a company who want
financial information about the company. These
users are not directly involved in managing and
operating the business. The two most common
types of external users are potential investors and
creditors.
Potential Investors use accounting information
to make decisions to buy shares of a company .
Creditors (such as suppliers and bankers) use
accounting information to evaluate the risks of
granting credit or lending money. Also included as
https://www.iconspng.com/.
external users are government regulatory agencies such as Securities and Exchange
Commission (SEC), Bureau of Internal Revenue (BIR), Department of Labor and
Employment (DOLE), Social Security System (SSS), and Local Government Units
(LGUs).
External users (Secondary Users) of accounting information include the following:
Creditors: for determining the credit worthiness of an organization. Terms of credit

are set by creditors according to the assessment of their
customers' financial health. Creditors include suppliers as well as lenders
of finance such as banks.
16
Tax Authorities (BIR): for determining the credibility of the tax returns filed on behalf
of a company.
Investors: for analyzing the feasibility of investing in a company. Investors want to

make sure they can earn a reasonable return on their investment
before they commit any financial resources to a company.
Customers: for assessing the financial position of its suppliers which is necessary for
them to maintain a stable source of supply in the long term.
Regulatory Authorities (SEC, DOLE): for ensuring that a company's disclosure of

accounting information is in accordance with the rules and regulations set
in order to protect the interests of the stakeholders who rely on such
information in forming their decisions.
Types of Information needed by each Group of Users
Accounting information includes both financial (quantitative) and non financial

(qualitative) information used by the decision maker.
*Qualitative analysis-means looking at the intangibles
*Quantitative analysis- means looking at the actual
numbers.
*Comprehensive analysis- should include looking at
both qualitative and quantitative factors that would
impact decision maker.
SUMMARY OF THE DIFFERENCES BETWEEN

INTERNAL AND EXTERNAL USERS
Internal users of accounting information are those

who are involved in planning, organizing and running
the business. They need more detailed information on
https://visme.co/blog/types-of-graphs/
a timely basis in order to support their decisions. Examples of these internal users
are managers, employees and owners.
The external users of accounting information are those individuals or

organizations outside a company who are interested in its financial information.
Examples of these external users are potential investors, suppliers and government
agencies.
17
What’s More
Activity 3
Instructions: Answer the questions below. Write your answer on the lines provided.
Give an example of External Users?
What kind of information do users need that can be answered by

Accounting?
What decisions of external users that are supported by

accounting information?
What I Have Learned
Activity 4
Directions: Answer the questions below. Write you answer on the lines
provided.
1. Is the Local Government Unit (LGU) interested in your accounting reports?
___________________________________________________________________
2. Are the officers of the Local Government Unit internal or external users? Why?
18
What I Can Do
Activity 5
Instructions: Using the graphic below. Write at least four frequently asked
questions by Internal Users. Write your answer on the lines provided.
E-BOOK
Carlsberg S. Andres, Arthur P. Barrido, Jr., and Christopher B. Honorario. (2016). Fundamentals of Accountancy, Business, and Management 1. Commission
on Higher Education.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
19
Self-Check!
Great job! You have completed Lesson 2 successfully! Before going to the next
lesson, check the icon that best shows your learning experience.
I have understood the lesson but there are still other

things that I need to review and relearn.
https://www.focusjunior.it/scuola/italiano/analisi-logica/complementi-cosa-sono-cosa-servono/.
I have understood the lesson well and I can even teach

what I learned to others.
https://pxhere.com/en/photo/1450659.
I need to do additional work to be able to master the

If you checked the first icon, you are ready for lesson 2.
lesson. I need help in some tasks.
If you have checked the first icon, you can proceed to the next module. If you
have checked the second icon, you need to review the things that you need to relearn.
If you have checked the third icon, it would be best if you read more and ask help
from your teacher, parents or peers in clarifying the lessons that you find difficult.
Be honest so that you will truly improve.
Assessment
Essay
Instructions: Answer the questions according to your own understanding. Write

your answer on the lines provided below.
1. In your own opinion, which internal user needs the accounting information the
most? Why?
20
2. In your own opinion, which the external user needs the accounting information the
most? Why?
3. Differentiate internal users from external users of accounting information.
Short Essay Rubric:

Unsatisfactory Needs Satisfactory Outstanding
Improvement
0 pts 5 pts 15 pts 25 pts
Content & Unsatisfactory Needs Satisfactory Outstanding
Development Improvement
- Content is - Content is - Content is
incomplete. - Content is not accurate and comprehensive,
- Major points are comprehensive persuasive. accurate, and
not clear. and /or - Major points are persuasive.
-Specific persuasive. stated. - Major points
examples are not - Major points are - Responses are are stated
used. addressed, but adequate and clearly and are
not well address topic. well supported.
supported. - Content is clear. - Responses are
- Responses are -Specific excellent, timely
inadequate or do examples are and address
not address topic. used. topic.
-Specific - Content is
examples do not clear.
support topic. -Specific
examples are
used.
Organization Unsatisfactory Needs Satisfactory Outstanding
& Structure Improvement
- Organization - Structure is -Structure of the
and structure - Structure of the mostly clear and paper is clear
detract from the paper is not easy easy to follow. and easy to
message. to follow. - Transitions are follow.
- Writing is - Transitions need present. - Transitions are
disjointed and improvement. - Conclusion is logical and
lacks transition of - Conclusion is logical. maintain the
thoughts. missing, or if flow of thought
provided, does throughout the
not flow from the paper.
body of the - Conclusion is
paper. logical and flows
21
from the body of
the paper.
Grammar, Unsatisfactory Needs Satisfactory Outstanding
Punctuation Improvement
& Spelling - Paper contains - Rules of - Rules of
numerous - Paper contains grammar, usage, grammar,
grammatical, few grammatical, and punctuation usage, and
punctuation, and punctuation and are followed with punctuation are
spelling errors. spelling errors. minor errors. followed;
Spelling is spelling is
correct. correct.
CONGRATULATIONS
FOR COMPLETING THIS MODULE!
https://www.pinterest.ph/pin/639651953309372765/.
22
23
Activity 3 Post-test
1. Accounting is the process of 1. Transactions
IDENTIFYING, RECORDING and 2. Accounting
COMMUNICATING 3. Process
economic events of an organization for 4. Recording
interested users. 5. Art
2. • Is my business earning? 6. Clay Tablet
(profitability) 7. Luca Pacioli
• How much daily or monthly sales do I 8. Summa de Arithmetica
need in order to recover my fixed cost? 9. The Industrial Revolution
(break-even) 10. 19th century- The beginning of
• Do I need to hire additional workers to modern accounting in Europe and
help me with my production? America
• Can I afford to set up a new store in
another place? Where do I get the Activity 4
funds? (financing Video Presentation
decisions)
• Can I afford to pay a bank loan? Activity 2
Yes, accounting is very important.
It affects our daily activities in a way that
we account everything we do. Example,
my parents give me one hundred pesos
Activity 1 of daily allowance in school. Breakdown
as follows;
IDENTIFYING – this involves selecting Allowance P100
economic events that are Expenses:
relevant to a particular business Fare (Tricab) P20
transaction Morning Snack 20
The economic events of an Lunch 30
organization are referred to as Afternoon snack 20 (90)
transactions. Balance P10
Examples of economic events or
transactions - In a bakery business: Accounting helps us to
• sales of bread and other bakery budget our money, track our expenses
products and income to save for the future. Thus,
RECORDING – this involves keeping a invest to make more money.
chronological diary of events that are
measured in pesos. The diary referred
to in the definition are the Pre-test
journals and ledgers which will be 1. C 6. A 11. B
discussed in future chapters. 2. B 7. A 12. D
COMMUNICATING – occurs through 3. D 8. C 13. A
the preparation and distribution of 4. B 9. D 14. C
financial and other accounting reports. 5. C 10. B 15. E
(Lesson 1)
Answer Key
24
Activity 5
1. Is cash sufficient to pay
bills?
2. What is the cost of
manufacturing each unit of
product?
3. Can we afford to give
employee pay raises this
Activity 4 year?
1. Yes. The LGU will check 4. Which product line is the
whether you are paying your most profitable?
local taxes. As required,
businesses must have a
business permit before they are
allowed
to operate in the city or Activity 3
municipality. This is renewed potential investors –
every year, with appropriate
taxes paid. The local government Income or profit of the business
may review your resources or assets of the business
accounting records to check liabilities or amount owed by the
whether you are declaring or business to its suppliers
paying the correct taxes. taxes paid by the business
2. External. They are not directly salaries and other benefits paid to
involved in the operation or employees
management of the business.
Potential Investors – Is it profitable
Activity 2 for me to invest in this business?
1.
• How much income have I earned
for a certain period?
• How much receivables do I have?
• How much do I owe my
suppliers?
• How much is the value of my
inventory? Activity 1
2. I have learned in the previous lesson that
• Will I be able to pay my liabilities accounting is a systematic process of
if I earn this much? identifying, recording, measuring,
• Can I expand my business? Will I classifying, verifying, summarizing,
be able to afford buying new interpreting and communicating financial
equipment? information.
• Do I need to adjust my selling One nature of accounting is, it is a service
price? activity and the father of accounting is Luca
• Do I need to cut costs? Pacioli.
(Lesson 2)
25
Post Test
1. Owners – They use the accounting
information for analyzing the viability
and profitability of their investments.
Owners invest capital to start and run
business with the primary objective to
earn profit. They need accurate financial
information to know what they have
earned
2. Investors- They use financial
statements to obtain valuable
information used in the valuation and
credit analysis of companies. ...
Knowledge of accounting helps investors
determine an assets' value, understand a
company's financing sources, calculate
profitability, and estimate risks
embedded in a company's balance sheet.
3. Internal users are people within a
business organization who use financial
information. While External users are
people outside the business entity
(organization) who use accounting
information.
References
BOOK
Anastacio, Ma. Flordeliza. Fundamentals of Financial Management (with Industry

Based Perspective).( Manila: Rex Book Store, 2011).
Gilbertson, Claudia. Fundamentals of Accounting. 8th ed. (Australia: Cengage

Learning, 2010).
Padillo, Nicanor, Jr. Financial Statements Preparation, Analysis and Interpretation.

(Manila: GIC Enterprises, 2011).
Pefianco, Erlinda C. The Accounting Process: Principles and Problems. (Makati:

Goodwill Trading, 1996).
Young, Felina C. Principles of Marketing. (Manila: Rex Book Store, 2008).
WEBSITE
Bytt Sprak.”Inspisere bøker”. Publicdomainvectors.org. Accessed July 30, 2020.

https://publicdomainvectors.org/no/gratis-vektorbilder/Inspisere-b%C3%B8ker/69
444.html.
“Clipart house diagram”.WebStockReview. Accessed date July 30, 2020.

https://webstockreview.net/pict/getfirst.
Corsair’s Publishing. “An Uncollected History of Feedback”. Medium Circa Navigate.

February 10, 2016. https://circa-navigate.corsairs.network
/an-uncollected-history-of-feedback-6 48dff27d94a.
“Datei:Shokunin businessman.svg”. Wikipedia. Accessed date July 30, 2020.

https://de.wikipedia.org/wiki/Datei:Shokunin_businessman.svg.
deko.bakimparasiyataniller.net. Pinterest. Accessed date July 30, 2020.

https://www.pinterest.ph/pin/639651953309372765/.
“Empty Female Boutique High-Res Stock Photo”. Getty Images. Accessed date July
30, 2020. https://www.gettyimages.com/detail/photo/
empty-female-boutique-royalty-free-image/157586327.
“Free building icons png, BUILDING images - Free”. PNG and Icons. Accessed date
July 30, 2020. https://www.iconspng.com/.
“Free Images : child, reading, book, girls, education, toddler. PxHere. Accessed date
July 30, 2020. https://pxhere.com/en/photo/1450659.
“Friends Talking Icon”. Designtrends. Accessed July 30, 2020.

https://www.designtrends.com/graphic-web/icons/human-icons.html.
26
“I can provide you 200 buy and sell groups”. 199 Jobs. Accessed date July 30, 2020.
https://199jobs.com/jobs/admin-office/provide-you-200-buy-and-sell-groups/.
“I COMPLEMENTI: COSA SONO?”. Focus Junior. Accessed date July 30, 2020.
https://www.focusjunior.it/scuola/italiano/analisi-logica/complementi-cosa-sono-c
osa-servono/.
“Illustration Kids Clipart Free Photo”. Needpix.com. Accessed date July 30, 2020.
https://www.needpix.com/photo/1153751/illustration-kids-clipart-graphics-the-cla
ssroom-materials-teaching-materials-study-of-students.
“Książka Rysunek Dla Dzieci”. Jing.fm. Accessed date July 30, 2020.
“New Lenovo 110-15ACL 15.6" AMD A6-7310 Quad-core 4GB 500GB DVDRW
Ideapad Black”.Ebay. Accessed July 30, 2020.
https://www.ebay.com/c/24011372739.
“New MFS-4 SSE Installation”.Southern Pine Construction Company | Bacolod City |

Philippines. Accessed date July 30, 2020.
http://southernpineconstruction.com/project-list/item/114-new-mfs-4-sse-installati
on?tmpl=component.
“New Trends Updates for Ready-to-Fill Pastry Market by 2025| Pidy Gourmet NV,
Royal Smilde BV, Wallbridge Company Ltd., Bells Professional Pastry”.
KDMArketResearch. Accessed date July 30, 2020.
https://teletype.in/@kdmarketresearch/rkNaR5xlL.
PinClipart.com Inc..”Picnic Clipart - Clipart - Table - Pages In A Book Clipart - Png

Download”.Pinclipart.Accessed July 30, 2020.
https://www.pinclipart.com/maxpin/iRJRhm/.
Pixy.org.”STOCK EXCHANGE BOOM, DIGITAL ART, CONCEPT”. Pixy.org.

Accessed July 30, 2020. https://pixy.org/5745553/.
Reethes.”Open Book Wall art”.Redbubble.Accessed July 30, 2020.

https://www.redbubble.com/shop/open%20book+prints.
“Tablet Computer, Smartphone And Newspapers Stock Illustration”.Dreamstine.com.

Accessed July 30, 2020. https://www.dreamstime.com/
royalty-free-stock-photos-tablet-computer-smartphone-newspapers-creative-busi
ness-corporate-work-concept-pc-modern-black-glossy-touchscreen-news-image
32753338.
E-BOOK
Carlsberg S. Andres, Arthur P. Barrido, Jr., and Christopher B. Honorario. (2016).

Fundamentals of Accountancy, Business, and Management 1. Commission on
Higher Education.
27
For inquiries or feedback, please write or call:
Department of Education - Division of Misamis Oriental
Office Address: Del Pilar corner Velez Street, Brgy 29, Cagayan de Oro City
Telefax: (088) 881-3094 | Text: 0917-8992245 (Globe)
E-mail Address: misamis.oriental@deped.gov.ph

FABM1-11 q3 Mod1 Introductiontoaccounting v5

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Senior High School

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Published by the Department of Education - Division of Misamis Oriental

Development Team of the Module

Writers: Ken Witty V. Sabaldana, MBA

Chairperson: Dr. Arturo B. Bayocot, CESO III

Co-Chairpersons: Dr. Victor G. De Gracia Jr. CESO

Members: Maria Emerald A. Cabigas,PhD EPS-LRMS; Bienvenido U. Tagolimot, Jr.,

Printed in the Philippines by

What I Need to This part contains learning objectives that

What I know This is an assessment as to your level of

What’s New An introduction of the new lesson through

What is It These are discussions of the activities as a

What’s More These are follow-up activities that are in-

What I Have Activities designed to process what you

What I can do These are tasks that are designed to show-

Answer Key ---------------------------------------------------------------------- 23

For the Learners

This is an introductory course in accounting, business and management

This module in Fundamentals of Accountancy, Business and Management 1

Meaningful activities are given in the form of worksheets, assignments and

To do well in this module, you need to remember the following:

1. Read texts carefully;

2. Answer questions with all honesty;

3. Review your answers;

4. Follow instructions given;

5. Do the tasks given and do not delay in submitting requirements;

6. Feel free to communicate with your teacher;

8. Have fun as you learn.

 Define accounting (ABM_FABM11-IIIa- 1)

 Describe the nature of accounting (ABM_FABM11-IIIa-2)

 Narrate the history/origin of accounting (ABM_FAB M11- IIIa-4)

Directions: Explain the three highlighted words in the infographic.

It is a systematic process of identifying, recording, measuring, classifying,

P100,000 (initial investment)

Accounting is commonly called the “Language of Business” wherein it

The American Institute of Certified Public Accountants (AICPA) defines

This definition will provide a better understanding of accounting in terms of

>Accounting is considered an art and a science;

Accounting information gives business owners the chance to analyze the

According to Accounting Theory ;

Accounting is a service activity.

Accounting provides assistance to decision makers by providing them financial

Accounting is both an art and a discipline.

Accounting is the art of recording, classifying, summarizing and finalizing financial

Accounting deals with financial information and transactions.

Accounting is recognized and characterized as a storehouse of information. As a

Accounting is as old as civilization itself. It has

The Cradle of Civilization

14th Century - Double-Entry Bookkeeping

French Revolution (1700s)

The Industrial Revolution (1760-1830)

19th Century – The Beginnings of Modern Accounting in Europe and America

The Present - The Development of

(SEC). As economies worldwide continued to globalize, accounting

Directions: Go back to the unanswered question in the introduction of this topic.

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

2. Give examples of decisions or questions that can be supported by accounting

I have understood the lesson well, and I can even

I have understood the lesson, but there are still other

I need to do additional work to be able to master the

_____________1) Refers as the economic events of an organization.

_____________2) The art of recording, classifying, summarizing and finalizing