FUNDAMENTALS OF

ACCOUNTANCY,
BUSINESS AND
MANAGEMENT 1
Manuel L. Hermosa, EdD
Master Teacher II
– Heavenly Father,
– We thank you for giving us another life,
We thank you for another beautiful morning.
As we go on through our lessons today,
May you make us instruments to do good things.
Please enlighten our minds,
Give us strength to participate in our task.
– This we asked in the mighty name of Jesus, our Lord
and savior.
– Amen.
If you have QUESTIONS after
the class, please DIAL …..

- 0917-840-6752 (GLOBE only)

- 0925 -729-6138 (SUN only)
- manuel.hermosa@deped.gov.ph
REVIEW OF THE PAST LESSON:
LESSONS OBJECTIVES FOR
Q3,WEEK 2
WHAT IS ACCOUNTING?
 Likewise, According to Accounting Theory
(http://accountingtheory.weebly.com/nature-and-scope-of-accounting.html):
―Accounting is a systematic recording of financial transactions and the
presentation of the related information to appropriate persons.‖ Based on
this definition we can derive the following basic features of accounting:
 • Accounting is a service activity.
 • Accounting is a process
 • Accounting is both an art and a discipline.
 • Accounting deals with financial information
 and transactions
 • Accounting is an information system
Let us check: The following economic activities below and check if it provides
accounting features. Kindly put a letter “Y” if the transactions conform as an
accounting transaction and a letter “X” if not.

1. Joe earned additional P 20,000 on their share at Direct

Delivery, Inc.
2. He bought P 4,500 office supplies.
3. The employee salary was due last January 15, 2018.
4. The business will be collecting the fees that were earned.
5. The business will incur expenses in operating the business,
such as a rent expense, electricity expenses, water and
others.
6. 6. He had a P200,000 back up on his account.
History: 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 evolution of
accounting:
• Cradle of Civilization - 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.

• 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.
History: 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 evolution of accounting:

• The Industrial Revolution (1760-1830)- Mass production and

the great importance of fixed assets were given attention.

• 19th Century – The Beginnings of Modern Accounting in

Europe and America –

• The Present - The Development of Modern Accounting

Standards and Commerce.
 SUMMARY:
 LESSONS ASSIGNMENT # 2

1. Read the Module 2/ Materials;

2. Answer the questions; and
3. Follow asynchronous assigned
task for this week.
 Again, If you have QUESTIONS
after the class, please DIAL …..

- 0917-840-6752 (GLOBE only)

- 0925 -729-6138 (SUN only)
- manuel.hermosa@deped.gov.ph