ABM Student's Journey

(PART3)
GR11 *Earth and Life Science*

|History of the Earth|

The Earth was formed about 4.5 Billion years ago. During the Earth’s early formation, it was desolate and was just composed of ice and rock with no atmosphere and water. However, deep within it lie radioactive elements gradually unleashing their radioactive power as well as melted rocks that did not cool for the next hundred million years. As the cooling took place, a dense core of nickel, iron and other

Heavy elements formed, which was enveloped by a liquid outer core. Land masses began to form spewing lava and ash clouds. Gravity held the blanket of gases. Moisture in the clouds fell as rain and ev***rated, and fell again, eventually forming the bodies of water. These processes continuously took place and the Earth was reshaped again and again.

The same forces acting on the Earth today are the same forces that shaped the Earth throughout its history. This is known as the principle of uniform processes. Volcanic eruptions, earthquakes, storms, and floods which have all occurred in the past, still continue to shape the Earth today, just at different rates.

The geological history of Earth follows the major events in Earth's past based on the geologic time scale, a system of chronological measurement based on the study of the planet's rock layers (stratigraphy).Earth formed about 4.54 billion years ago by accretion from the solar nebula, a disk-shaped mass of dust and gas left over from the formation of the Sun, which also created the rest of the Solar System.

Earth was initially molten due to extreme volcanism and frequent collisions with other celestial bodies. Eventually, the outer layer of the planet cooled to form a solid crust when water began accumulating in the atmosphere. The Moon formed soon afterwards, possibly as the result of a Mars-sized object with about 10% of the Earth's mass impacting the planet in a glancing blow. Some of this object's mass merged with the Earth, significantly altering its internal composition, and a portion was ejected into space. Some of the materials survived to form an orbiting moon. Outgassing and volcanic activity produced the primordial atmosphere. Condensing water v***r, augmented by ice delivered from comets, produced the oceans.

As the surface continually reshaped itself over hundreds of millions of years, continents formed and broke apart. They migrated across the surface, occasionally combining to form a supercontinent.Roughly 750 million years ago, the earliest-known supercontinent Rodinia, began to break apart. The continents later recombined to form Pannotia, 600 to 540 million years ago, then finally Pangaea, which broke apart 180 million years ago.

The present pattern of ice ages began about 40 million years ago, and then intensified at the end of the Pliocene. The Polar Regions have since undergone repeated cycles of glaciation and thaw, repeating every 40,000–100,000 years. The last glacial period of the current ice age ended about 10,000 years ago.”

CONTINENTAL DRIFT THEORY

Alfred Wegener theorized that there was once a vast supercontinent 200 million years ago which he named Pangaea meaning "All-earth".

Pangaea broke into two smaller supercontinents, called Laurasia and Gondwana throughout the Jurassic period. By the end of the Cretaceous period, the continents were separated into land masses that looked like our modern-day continents. In 1915, Alfred Wegener published this theory in his book, “On the Origin of Continents and Oceans”.

There are fossil evidences which supported the continental drift theory. Eduard Suess, an Austrian geologist first substantiated that there had once been a land bridge connecting South America, Africa, India, Australia, and Antarctica. He named this large land mass Gondwanaland. This was the southern supercontinent formed after Pangaea broke up during the Jurassic period. Suess based his deductions on the fossil plant Glossopteris, which is found throughout India, South America, southern Africa, Australia, and Antarctica.

Fossils of Mesosaurus (one of the first marine reptiles, even older than the dinosaurs) were found in both South America and South Africa. These finds, plus the study of sedimentation and the fossil plant Glossopteris in these southern continents led Alexander duToit, a South African scientist, to bolster the idea of the past existence of a supercontinent in the southern hemisphere, Eduard Suess's Gondwanaland. This lent further support to A. Wegener's Continental Drift Theory

•The Subsystems of the Earth•

Lithosphere

The lithosphere is basically the rocky crust of the earth. It is inorganic and is composed mainly of different kinds of minerals.

Hydrosphere

This is composed of all the waters in the Earth. This includes the oceans, seas, rivers, lakes, and even the moisture in the air.
Biosphere
The biosphere is comprised of all living organisms, from the smallest bacteria to the largest whale. Plants, animals, and single-celled organism are all part of the biosphere.

Atmosphere

Atmosphere is the mass of air surrounding our planet. It is subdivided into different layers of different densities. The air of Earth is comprised of 79% Nitrogen and fewer than 21% Oxygen. The remaining amount is shared by Carbon Dioxide and other form of gasses.
Remember that the parts mentioned are interconnected and influence the climate, trigger geological processes, and affect life all over.

-ctto

(PART2)

Gr11 -Earth and Life Science -

*Origin and Structure of the Earth*

Origin and Structure of the Earth and Beyond
Geology

This is the study of the earth’s rocky parts found on the crust (lithosphere) and its historical evolution. It covers lots of different disciplines of sciences such as mineralogy and petrology, geochemistry, geomorphology, paleontology, stratigraphy, structural geology, engineering geology and sedimentology.

Physical Geography

Also known as geosystems or physiography. Physical Geography deals with the study of the physical features of the Earth’s surface. It also deals with the different processes and patterns in the natural environment, as opposed to the cultural domain of human geography.

Geophysics

This field studies the shape of the Earth, its reaction to different forces as well as its magnetic and gravitational fields. This study is most vital for mineral and petroleum explorations

Soil Sciences

Soil sciences cover the Earth’s outermost layer which is the crust. Major sub-disciplines of soil sciences include edaphology and pedology.

Oceanography/Hydrology

This field of science studies the marine and freshwater domains of the hydrosphere. The major subdivisions include hydrogeology and physical, chemical, and biological oceanography

Glaciology

Glaciology studies the ice and icy parts of the Earth known as the cryosphere, and its effects to the environment.

Atmospheric Sciences

This deals with the study of the gaseous parts of the Earth, known as the atmosphere. The major sub-disciplines are meteorology, climatology, atmospheric chemistry and atmospheric physics

These different fields of Earth Sciences are interdisciplinary. They rely on one another for information to further develop their respective areas.

Structure of the Earth
Crust

The crust is the outermost layer of the Earth comprising about 8-40 km in depth. The presence of mountain ranges, volcanoes, and earthquakes on the Earth’s crust are explained through studying of the different energy transformations. The crust is separated from the next layer by a boundary or surface with seismic waves that change velocity, known as Mohorovičić Discontinuity. It was named after Andrija Mohorovičić, a Croatian seismologist who discovered its existence.

Mantle

The mantle lies beneath the crust and extends to a depth of 2,900 km making it the thickest layer of the Earth. It is made up of very hot and dense rocks which flow due to great differences in temperature moving from the bottom to the top of the mantle, called convection currents.

Convection currents from the deepest part of the mantle is a very hot material that rises and cools, then sinks and then heats again making a cycle. The convection current acts like a conveyor belt in a factory which moves boxes. The mantle is divided into 2 sections: the upper and lower mantle, separated by the transition zone (a discontinuity between the 2 mantles).

Core

The core is the innermost part of the Earth. It is divided into two parts - a solid inner core which is about 1,300 km and a liquid outer core about 2,250 km thick.

The outer core is made up of very hot liquid metals. It is composed of melted nickel and iron. The inner core, on the other hand, is in a solid state despite its very hot temperature, because of the pressure. The metals are squeezed in and are so dense that they are not able to move.

Formation of Earth
The Creation Theory - is biblical in origin asserting that everything in the universe, including humans were created by a supreme being in a span of 7 days

The Big Bang Theory - speaks of the Earth's formation in a scientific perspective. It states that the universe is formed sometime between 10 and 20 billion years ago from a cataclysmic explosion.

The two contradicting theories stemmed lots of arguments from believers of the creationism and those who believe otherwise. One cannot really say exactly how the universe was formed, but humans do work on the pieces of evidence that are at hand to answer whatever questions people may have.

ctto. /references (I do not own this full explanation about the origin amd structure of earth) Just want to share it with you guys!

-ctto

My oral communication teacher told me this:

"When you speak, be confident. Don't mind the stares. Be calm.Think that you are the most beautiful/handsome person in the world. Talk as if everyone wants to listen to you. There's a treasure box in your mind and people are waiting to know what's inside of it. It doesn't matter if you make a mistake. It's how you learn."

Just sharing. It changed me.

FABM 1 (PART 2)

THREE TYPES OF BUSINESS ACTIVITIES/­OPERATIONS
1. Sevice Business
– A service types of business provides inatangible products (products with no physical form). This types of business offers professional skills,expertise, advice and other similar products.

Ex.
Salons,repair shops, schools, banks,law firms and Accounting firms

2.Merchandising
– A "Buy-and-sell" type of business. It is the types of business that buys products at a wholesale price and sell at a retail price.
–This types of business sells a product without changing its form.
Ex.
Grocery stores
Convenience store

3. Manufacturing Business
–unlike merchandising, a manufacturing buys products with the intention of using them as raw materials in making a new product.

FORMS OF BUSINESS
1. Sole proprietorship
–Business formed by a single individual
2. Partnership
– composed of 2-5 members.
3. Corporation
–5 or more
~~~~~~~~~~~~~~~~~~~~­~~~~

ACCOUNTING CONCEPTS & PRINCIPLES

3 ACCOUNTING CONCEPTS
1.Entity - Business is separate and distinct from the owner.
2. Periodicity – make a financial report within time period.
3. Going-concern– The Accountant will assumes that the business will continue, indefinitely to operate.

6 ACCOUNTING PRINCIPLE
1. Objectivity
– Everything you report should always be supported by verifiable evidence.
2.Historical cause
– Record at original cause
3. Accrual
– Income should be recognized at the time it is earned.
4.Adequate Disclosure
–All material facts that will significantly affect the financial report statement should be indicated.

5. Materiality
– Only materials should be recorded but if it is immaterial, it should be recorded a EXPENSES.

6. Consistency

4 KINDS OF FINANCIAL REPORT
1. Statement of financial Position or Balance Sheet
–shows the condition of a company.
2. Statement of Comprehensive Income Or Income statement
–shows the result of operation of the business.
3.Statement of Cash Flow
–summarizing the cash receipts and Cash disbursement.
4.Statement of Owner's Equity– shows the charges in the capital or owners equity as a result of additional investment intramurals plus or minus net income or net loss.

FABM 1 (Part 1)

4 phases of accounting
1. Recording
2. Classifying
3. Summarizing – make financial report
4. Interpreting

NATURE OF ACCOUNTING
1. Accounting is an art.
-skills learned are acquired
2. Accounting is a process.
- series of action leading to a result
3. Accounting is a service activities.
- It is a work or occupation that serves its purpose.

FUNCTION OF ACCOUNTING
-To provide relevant financial information to the users. ~~~~~~~~~~~~~~~~~~~~­~~~~
HISTORY/ORIGIN OF ACCOUNTING

•ACCOUNTING DURING ANCIENT TIME IN...

EGYPT

Abacus (Calcutor in their time)
–a device used for c­ounting and calculating by slidi­ng small balls or beads along rods or in grooves.

Papyrus
–accounting records
–Medical transcript, music, literature

MESOPOTAMIA
Ito yung time na nagkaroon na ng katawagan ang Accountant which is "SCRIBES".

Scribes–now called as "Accountant"

GREECE
–Phoenician (unify) writing system Greek alphabet.

•14th Century- The Birth of double entry Bookkeeping

Luca Pacioli- Father of accounting
–He Published a book entitled "DE COMPUTIS ET SCRIPTURIS", wherein bookkeeping was discussed.
– The idea of accounting was not originally from him but from Benedetto Cotrugli.

19th century- The dawn of modern accountacy in Europe and America •Industrial Revolution
– There have a power tools and businesses and Accounting became profession.

20th Century-The evolution of modern Accounting & standards

Information Age – brought about so many changes in business 21th century learners in Accountancy should be always ready and updated

~~~~~~~~~~~~~~~~~~~~­~~~~
USERS OF ACCOUNTANCY
Internal users
•employees
•manager
•etc.

External
•Investors
•Government
•Suppliers
•buyers
•creditors
•etc.

(PART1)

Practical Research 1

●RESEARCH - a systematic process of investigating and getting information from a respondent.

● PROXIMITY - area of responsibility.

●IMPORTANCE OF RESEARCH
- it adds knowledge about educational issues.
- helps inform policy
- builds researchers' skills

● STEPS TO FORMULATE A RESEARCH :
1. Identify the Research Problem
- specify a problem
- justify a problem
2. Reviewing the Literature
- locate the source or related studies
3. Purpose of Research
- narrow the purpose
- state clearly
4. Collecting Data
- determine the method
- select the individuals
- design data collection
- obtain permission
- gather info.
5. Analyzing and Interpreting Data
- break down data
- explaining the data
- interpreting the data
6. Reporting and Evaluating Research
- determine the audience for the report
- write the report sensitively and accurately

●TYPES OF RESEARCH
○Quantitative
- more on variables
- deductive ( general to specific)
- measure objective facts
- objective instrument of data collection
- highly structured research process
- research is detached ( outsider)
○Qualitative
- more on description.
- inductive (specific to general)
- meaning is constructed
- values are present
- researchers as the central tool for data collection
- loosely structured research process
- research is immersed ( insider )

● TYPES OF DATA COLLECTION
- observation
- interviewing
- focus groups
- document analysis

● RESEARCH APPROACHES
1. Case study - one test subject, rare case.
2. Ethnography - traditional, group of peole.
3. Phenomenology - human, self - awareness .
4. Historical - past events, hypothetical deviation.
5. Action Research - plan > implement> observe > reflect .

ctto.

21st Century Literature from the Philippines and the World
-This course aims to engage students in critical study and appreciation of 21st Century Literature from the Philippines and the World encompassing their various dimensions, genres, elements, structures, contexts, and traditions.

Business Math
-This course will provide an understanding of the basic concepts of mathematics as applied in business. It includes a review of the fundamental mathematics operations using decimals, fractions, percent, ratio and proportion; mathematics concepts and skills in buying and selling, computing gross and net earnings, overtime and business data presentation, analysis and interpretation. The use of computer and software applications for computation and data presentation is encouraged.

Earth and Life Science
-This learning area is designed to provide a general background for the understanding of Earth Science and Biology. It presents the history of the Earth through geologic time. It discusses the Earth’s structure, composition, and processes. Issues, concerns, and problems pertaining to natural hazards are also included. It also deals with the basic principles and processes in the study of biology. It covers life processes and interactions at the cellular, organism, population, and ecosystem levels.

Empowerment Technologies
-Information and communication technologies as a tool for curating, contextualizing, collaborating, and creating content and experiences for learning in the professional tracks.

English for Academic and Professional Purposes
-The development of communication skills in English for academic and professional purposes.

Fundamentals of Accounting, Business Management 1
-This is an introductory course in accounting, business, and management data analysis that will develop students’ appreciation of accounting as a language of business and an understanding of basic accounting concepts and principles that will help them analyze business transactions.

Fundamentals of Accountancy, Business and Management 2
-The course deals with the basic accounting practices for different types of businesses. Simple computations are applied to understand documents related to Accounting. Knowledge and skills in accounting shall aid.

General Mathematics
-At the end of the course, the students must know how to solve problems involving rational, exponential and logarithmic functions; to solve business-related problems; and to apply logic to real-life situations.

Introduction to Philosophy of the Human Person
-This course gives an overview on the study of the basic principles underlying human behavior, cognition and effect. It aims to provide the student with a general overview of the field of psychology and focuses on the different perspectives in analyzing human development, namely: biological, behavioral, cognitive, humanistic, psychoanalytic and socio-cultural with emphasis on the scientific approach to understanding human behavior and mental processes.

Oral Communication in Context
-Information and communication technologies as a tool for curating, contextualizing, collaborating, and creating content and experiences for learning in the professional tracks.

Organization and Management
-This course is designed to familiarize the students with the basic concepts, principles, and processes related to business organization, and the functional areas of management. Particular emphasis will be given to the study of management functions like planning, organizing, leading, and controlling, and orient the students on the importance of these functions and the role of each area in entrepreneurship.

Pagsulat sa Filipino sa Piling Larangan
-Pagsulat ng iba’t-ibang anyo ng sulating lilinang sa mga kakayahang magpahayag tungo sa mabisa, mapanuri, at masinop na pagsusulat sa piniling larangan.

Physical Education and Health 1
-Information and communication technologies as a tool for curating, contextualizing, collaborating, and creating content and experiences for learning in the professional tracks.

Physical Education and Health 2
-Physical Education and Health offers experiential learning for learners to adopt an active life for fitness and lifelong health. The knowledge, skills and understanding which include physical and health literacy competencies support them in accessing, synthesizing and evaluating information; making informed decisions; enhancing and advocating their own as well as others’ fitness and health. This course is comprised of individual, dual and team sports in competitive and recreational settings. It consists of an array of offerings which learners can choose from.

Physical Education and Health 3
-Physical Education and Health is an essential part of the general education department that aims for the total development of an individual by participation in vigorous activities and creating a healthy lifestyle for lifelong physical activities. The knowledge, skills and understanding which includes physical and health literacy competencies support them in accessing, synthesizing and evaluating information, making informed decisions, enhancing and advocating their own as well as other’s fitness and health. Dancing is a way of expressing our moods feelings and emotions. It is a wonderful, gentle but thorough way to exercise our body. It encourages good poise regardless of age and is a great social asset.

This course will help the students to promote and appreciate our Philippine folk dance, indigenous and traditional dances as well as other dance forms.

Physical Science
-Evolution of our understanding of matter, motion, electricity, magnetism, light, and the universe from ancient times to the present; applications of physics and chemistry concepts in contexts such as atmospheric phenomena, cosmology, astronomy, vision, medical instrumentation, space technology, drugs, sources of energy, pollution and recycling, fitness and health, and cosmetics.

Reading and Writing Skills
-The development of reading and writing skills as applied to a wide range of materials other than poetry, fiction and drama

Research in Daily Life 1
-This course develops critical thinking and problem-solving skills through qualitative research.

Research in Daily Life 2
-This course develops critical thinking and problem-solving skills through quantitative research. The topics include the nature of inquiry and research which includes identifying the inquiry and stating the problem, learning from others and reviewing the literature, understanding data and ways to systematically collect data, finding answers through data collection, and the last is reporting and sharing findings.

Statistics and Probability
-At the end of the course, the students must know how to find the mean and variance of a random variable, to apply sampling techniques and distributions, to estimate population mean and proportion, to perform hypothesis testing on population mean and proportion, and to perform correlation and regression analyses on real-life problems.

Understanding Culture, Society and Politics
-The course introduces the basic theories, principles and concepts of sociology. It discusses the basic structures of human societies and the conditions that transform social life. It analyzes social relationships in the context of Philippine social institutions. Finally, it provides an introduction to population growth and its relationship to economic development.

Business Finance
-This course deals with the fundamental principles, tools, and techniques of the financial operation involved in the management of business enterprises. It covers the basic framework and tools for financial analysis and financial planning and control, and introduces basic concepts and principles needed in making investment and financing decisions. Introduction to investments and personal finance are also covered in the course. Using the dual-learning approach of theory and application, each chapter and module engages the learners to explore all stages of the learning process from knowledge, analysis, evaluation, and application to preparation and development of financial plans and programs suited for a small business.

Komunikasyon at Pananaliksik sa Wika at Kulturang Filipino
-Pag-aaral tungo sa pananaliksik ukol sa kalikasan, katangian, pag-unlad, gamit at paggamit ng Wikang Filipino sa mga sitwasyong komunikatibo at kultural sa lipunang Pilipino.

Media and Information Literacy
-The course introduces the learners to basic understanding of media and information as channels of communication and tools for the development of individuals and societies. It also aims to develop students to be creative and critical thinkers as well as responsible users and competent producers of media and information.

Personal Development
-This course focuses on the application of scientific knowledge and the solution of practical problems in a physical environment. It is designed to bridge the gap between theoretical science and daily living.

Principles of Marketing
-This Marketing Course is designed to equip students with knowledge and skills necessary to prepare them for a career in the field of marketing, advertising, business, sales and even public relations; to be professional and globally competitive.

Business Ethics and Social Responsibility
-This course deals with the fundamental concepts, principles, and practices of ethical standards in the business environment. It combines the theoretical foundations of setting up business enterprises with the conduct of entrepreneurial activities in the context of one's accountability and social responsibility.

Contemporary Philippine Arts From the Region
-This subject will define contemporary art and discuss the different types of contemporary art in the Philippine regions. The understanding of Philippine contemporary art will be discussed through an overview of the elements and principles of art, materials, techniques used by contemporary artists, the organizations that support the arts, contemporary artists from different regions practicing different art forms and the artistic processes artists undergo. It aims to provide students with an appreciation of a broad range of forms of Philippine contemporary art and apply what they have learned about contemporary art and its artistic working attitudes when creating their own art or pursuing other career goals.

Entrepreneurship
-Entrepreneurship will guide the students on how to start and manage a business; evaluate their entrepreneurial skills by combining management, marketing and finance principles. This course will help the student improve personal skills, discover techniques, enhance decision making skills to maximize goals in business opportunities.

Pagbasa at Pagsusuri sa Iba't Ibang Teksto Tungo sa Pananaliksik
-Ang kursong ito ay isang pag-aaral sa proseso ng pagbasa at pagsusuri ng ibat’t ibang anyo at uri ng teksto na nakatutulong sa pagbuo at pagsulat ng sistematikong pananaliksik. Ito ay binubuo ng tatlong larangan: ang una ay ang paglalahad ng mga konsepto sa pagbasa at ilang mga kasanayang dapat malinang; ang ikalawa ay ang kasanayan sa pagsusuri ng iba’t ibang uri ng teksto bilang isang hakbang sa pag-unawa sa mga babasahin; at ang ikatlong hati ay ang pagbuo ng isang sulatin sa anyo ng pananaliksik.

Pagsulat sa Filipino sa Piling Larangan
-Pagsulat ng iba’t-ibang anyo ng sulating lilinang sa mga kakayahang magpahayag tungo sa mabisa, mapanuri, at masinop na pagsusulat sa piniling larangan

Tips for incoming ABM students:
💠 Tip 1
☑️ Applied economics is a field that applies of economic theories and principles to real-world situations with the desired aim of predicting potential outcomes.
💠 Tip 2
☑️ Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer.
💠 Tip 3
☑️ The law of demand is a fundamental principle of economics which states that at a higher price consumers will demand a lower quantity of a good.
💠 Tip 4
☑️ A market demand curve expresses the sum of quantity demanded at each price across all consumers in the market.
💠 Tip 5
☑️ The law of supply says that a higher price will induce producers to supply a higher quantity to the market.
💠 Tip 6
☑️ Supply in a market can be depicted as an upward sloping supply curve that shows how the quantity supplied will respond to various prices over a period of time.
💠 Tip 7
☑️ A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.
💠 Tip 8
☑️ Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.
💠 Tip 9
☑️ An account title is the unique name assigned to an account in an accountingsystem. An account title is essential when the accounting staff needs to identify an account, since the title conveys the purpose of the account.
💠 Tip 10
☑️ An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations.
☑️ Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
☑️ Owner's equity is one of the three main sections of a sole proprietorship's balance sheet and one of the components of the accounting equation: Assets = Liabilities + Owner's Equity.

Fundamentals of Accountancy, Business, and Mamagement 1
LESSON 101: INTRODUCTION TO ACCOUNTING
PART I

Accounting VS Bookkeeping

Accounting is a systematic and comprehensive way of recording the business’ financial transactions. It is a process of summarizing, analyzing, and reporting business transactions to oversight agencies and tax collection entities. It is applicable and useful to all kinds of business such as multinational, small-scale and medium-scale. Since all of these kinds of businesses involve transactions that must undergo the accounting process to monitor its financial performance in the market; accounting is very important.

Definition of Accounting by:
Accounting Standards Council (ASC)
"Accounting is a service activity. The accounting function is to provide quantitative information, primarily Financial in nature, about economic entities, that is intended to be useful in making economic decision"

American Accounting Association AAA
“Accounting refers to the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information”

American Institute of Certified Public Accountant (AICPA)
"the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of financial character, and interpreting the results thereof"

(May sagot na kayo sa unang assignment sa FABM 1 HAHA Three major definition of accounting)

Bookkeeping is the recording part of accounting that uses systematic procedures in listing transactions. It has a narrower scope compared to accounting. A bookkeeper is the one who handles the basic accounting functions of a business that may include recording of the various transactions. He is also tasked to do the summarizing, reporting, and analyzing.

GAAP or Generally Accepted Accounting Principles is a set of standards related to balance sheet identification, outstanding share measurements, and other accounting issues. Its standards are based on a double-entry accounting.

Double-entry accounting is a method which enters each expense or incoming revenue in two places on a company’s balance sheet. It does not also use one place in a company’s balance sheet.

Components of accounting:

(1) Recording refers to the process of making records of all the transactions that the business made in a certain period of time.

(2) Summarizing pertains to the creation of a summary of the accumulated recorded transaction.

(3) Reporting is the process wherein the management presents reports to the company investors as to where the invested money is going

(4) Analyzing is the process of drawing out both the positive and negative points so that the financial performance of the company will be improved and where profits, sales, and cash are being compared to be able to draw the needed conclusions within the given period of time.

Objectives of Accounting:

(1) Creditworthiness for investors will need an assurance from the firm that all investments will be put to good use. It is targeted through providing past accounting records of the firm.

(2) Efficient use of resources is targeted through providing the records that summarizes the return obtained from the activities where the resources were placed into.

(3) Projections are targeted through providing the substantial accounting data that will be used to project costs and revenue growth of the firm in a given period of time.

(4) Measurement of the outcome is done through providing periodic financial statements which help the firm adjust their operations accordingly.

Limitations of Accounting:

(1) Subjective measurement is shown when accountants provide estimates that may result to manipulation of monetary value

(2) Unstable unit of account is seen through the different value of currencies that are very dynamic because of inflation, deflation, and other economic forces.

(3) No information about opportunity cost as the management do not have any information about what might happen if they will use their resources in an optimum manner

(4) Qualitative factor is one of the limitations of accounting which pertains to the incapability of accounting to attach monetary value to everything with goodwill as an example.

Types of accounts:

(1) Personal account pertains to all the transactions that have been undertaken by a particular person.

(2) Real account refers to the transactions concerning tangible things such as land and buildings among others.

(3) Nominal account is a special category account that is automatically reset to zero as soon as the time period is over.

Accounting data is one of the vital components for successful ventures. There are various stakeholders that benefit from accounting data. Capital markets make use of these data as basis for the appraisal of the stock price in the market. Lenders use accounting data to judge the creditworthiness of the firm. The government uses accounting data as it has to tax business based on the profit that the business can generate.

The different designations of an accountant are the following:

Certified Public Accountant

Certified General Accountant

Certified Management Accountant

They prepare the financial statements that will be used in the analysis of the financial performance of the firm. They act as business strategists when it comes to the amount of capital that will be spent in producing the demand of the market. They also act as advisers and consultants regarding financial moves of the company.

Cash accounting is a process that entails recording transactions only upon the exchange of cash. Here, revenues are only recorded upon the receipt of payment and expenses are only recorded upon the payment of the obligation.

Cost accounting helps businesses make decisions about costing for it considers all the costs, both fixed and variable costs to producing a product. This information determines the cost of the respective products.

Financial Accounting is a branch of Accounting that pertains to the process an accountant uses in generating the annual accounting statements of the firm. Financial statement is a summary of the company’s operations over a period of time. It shows the financial position of the company in its field and relative to its market. It is also a summary of the company’s cash flows that shows the excess of cash revenues over cash outlays in a given period of time.

The financial statements that are prepared in Financial Accounting:

(1) Balance Sheet is a record of financial situation of an institution on a particular date by listing its assets and claims against those assets

(2) Income Statement is a record of the operating results of a firm for a specific period

(3) Cash Flow Statement shows the excess of cash revenues over cash outlays in a given period of time.

Management accounting which is the process accountants use in generating the monthly or quarterly accounting statements of the firm.

Sources: Google, Basic Accounting by Win Ballada, and Quexbook

-ctto