•Do your parents ask you how

you spend your allowance

everyday ?
•When diciding what shirts or pants
do you want to buy , what is the
basis of your decision?
•Identifying- this involves economic
events that are relevant to
particular business transactions.
•Examples : bakery business.
•sales of bread and other bakery
products
•purchase of flour that will be use of
baking
•purchase of vehicle that will be needed
to deliver the products
•Recording : keeping a chronological
diaryof events that are measured in
pesos.
•journals and ledgers
•Communicating- occurs through the
preparation and distribution of
financial and other accounting
reports.
•The origin of accounting
Type of information needed by internal and
external users.
FORM OF BUSINESS ORGANIZATION
There
TYPES OF BUSINESS ACCORDING TO
ACTIVITIES : COMPARE AND CONTRAST
Activity 1 :

•Make a list of businesses in your

community to their activities .
•3 TYPES OF BUSINESS ACCORDING
TO THEIR ACTIVITIES
Activity 1 :

•Identify the advantages and dis-

advantages of each type of
business organization according
their activities.
Activity :

• 1. Why business entities are using

accounting principles ? What is the
significance of this principles in running
their business ?
• 2. Who are the user's of accounting data ?
are these user's use accounting concepts ?
Why ?
•Accounting principles applied in various
cases.
•Illustrate the accounting equation