11 ABM

COMPLETION

SUBMITTED BY: PRINCE CZAR C.

DIOSO
11 ST. CONSTANTINE ABM
SUBMITTED TO: MA’AM JHIM MOLINA
I.

1. TRUE
2. TRUE
3. FALSE/ACCOUNTING
4. FALSE/STRATEGIC MANAGEMENT
5. TRUE
6. TRUE
7. FALSE/ FINANCIAL PERFORMANCE
8. FALSE/ FINANCIAL STATEMENT
9. TRUE
10. TRUE
II.
1. HISTORY OF ACCOUNTING
Father of accounting is The Italian Luca Pacioli, Accounting arguably began
before the use of abstract counting. Around 7,500 BC, the Mesopotamians were
using small clay objects as counters for keeping account of goods. Each object
represented particular quantities of different types of commodities, such as food,
clothing, and even labour. They became increasingly complex over centuries,
bearing intricate markings, and eventually, imprints of these markings onto
parchment replaced the counters themselves. According to many scholars,
accounting and writing evolved side-by-side in this way. The need to keep a
record of both goods and currency was accelerated by a number of factors. One
was the ability to accumulate personal wealth. Affluent members of society
wanted to record what they had, what they owed, and what was owed to them.
More than 5,000 years ago, Egyptian bookkeepers were keeping detailed records
of the royal inventory, using bone labels attached to goods like oil and linen to
keep track of things such as owners, suppliers, and amounts. Another factor was
the rise of ruling entities such as royal families and governments. A particular
concern for these sections of society was finding more consistent ways to record
and demand tax The growth of global trade meant commerce was happening on a
much larger scale. Trading with vastly different societies for diverse resources
meant that traders could easily lose track of their activity without detailed
records.
2. Explain the importance of accounting information to internal and external
users, and to the business operations as whole.

Internal Users

Accounting supplies managers and owners with significant financial data that is
useful for decision making. This type of accounting in generally referred to as
managerial accounting.

 Some of the ways internal users employ accounting information include the

following:

 Assessing how management has discharged its responsibility for protecting

and managing the company’s resources
 Shaping decisions about when to borrow or invest company resources
 Shaping decisions about expansion or downsizing

External Users

Typically called financial accounting, the record of a business’ financial history

for use by  external entities is used for many purposes.  The external users of
accounting information fall into six groups; each has different interests in the
company and wants answers to unique questions. The groups and some of their
possible questions are:

 Owners and prospective owners. Has the company earned satisfactory

income on its total investment? Should an investment be made in this
company? Should the present investment be increased, decreased,
or retained at the same level? Can the company install costly pollution
control equipment and still be profitable?
 Creditors and lenders. Should a loan be granted to the company? Will the
company be able to pay its debts as they become due?
 Employees and their unions. Does the company have the ability to pay
increased wages? Is the company financially able to provide long-term
employment for its workforce?
 Customers. Does the company offer useful products at fair prices? Will the
company survive long enough to honor its product warranties?
 Governmental units. Is the company, such as a local public utility, charging
a fair rate for its services?
 General public. Is the company providing useful products and gainful
employment for citizens without causing serious environmental problems?

3. Graphic organizer
III.
DATE TRANSACTION ASSETS= LIABILITIES+ CAPITAL
FEB 15 1.owner’s 200,000 200,000
initial
investments
FEB 16 2. Purchased 200,000 200,000
3 computer (75,000) (75,000)
units
FEB 17 3.payment of 10,000 10,000
rent
FEB 18 4.Payment of (9,000) (9,000)
balance for
equipments
FEB 19 Rendered 24,000 5000 24,000
services (5,000) 5,000
Purchased
 office supplies
FEB 20 Rendered 10,000 10000
service to a
client

FEB 21 Cash revenues 12,000 12000

Feb 22 Cash revenues 11,350 11350
Feb 23 Cash revenues 16,000 16000
Feb 24 Owners 25,000 25000 25000
withdrawal
Feb 25 Cash revenues 12,500 12500
FEB 26 Cash revenues 13,650 13650
Feb 27 Cash revenues 15,500 15500
Feb 28 Cash revenues 14,350 14350
TOTAL 303,350 174000 359,350