Types of Businesses According to

Activities (Service, Merchandising,

Manufacturing)
Lesson 5
Objective
• Define and differentiate the different activities of
business organizations.
Types of Businesses according to Activities
SERVICE
Service businesses
generates income by
providing services (for a
fee)
Examples of
Services
 MERCHANDISIN
G

Buying and Selling of goods.

A company purchases goods

from a supplier, in which
these goods will be sold to
customers.
Examples of Merchandising
MANUFACTURI
NG
A company that
purchases raw
materials, in which
these raw materials
will undergo a process,
until it becomes
finished goods to be
sold to customers.
Examples of Manufacturing
Examples of Manufacturing
Can the three types go together?
Concert
Performances –
Services

Record Bar –
Merchandising

Production of Albums
–
Manufacturing
Can the three types work as a system?
Essential Oils Company
Manufacturing
Grocery
Merchandising
Massage Spa
Service
Income Measurement
Income Measurement
Income Measurement
Income Measurement

Net Income P 1,420,000.00

Accounting Concepts and
Principles
Lesson 6
Objective
• Define and explain the different accounting concepts
prevailing.
• Explain the generally accepted accounting principles
in the Philippines.
Accounting Concepts and Principles
Generally Accepted Accounting Principles
Generally Accepted Accounting Principles

…as applied in the Philippines

Economic Entity or Accounting Entity
Accrual Basis of Accounting
Going concern
Monetary Unit
Time Period
Cost Principle
Full Disclosure Principle
Matching Principle
Revenue Recognition Principle
Materiality

In accounting, materiality refers to the impact of an omission or

misstatement of information in a company’s financial statements
on the user of the those statements. If it is probable that users of
the financial statements would have altered their actions if the
information had not been omitted or misstated, then the item is
considered to be material. https://www.accountingtools.com/
Conservatism
Objective