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Accountancy, Business, and Management 1
Fundamentals of accounting (abm123)
Ateneo de Zamboanga University
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Teaching Guide for Senior High School
FUNDAMENTALS OF
ACCOUNTANCY,
BUSINESS, AND
MANAGEMENT 1
SPECIALIZED SUBJECT | ACADEMIC - ABM
This Teaching Guide was collaboratively developed and reviewed by
educators from public and private schools, colleges, and universities. We
encourage teachers and other education stakeholders to email their
feedback, comments, and recommendations to the Commission on Higher
Education, K to 12 Transition Program Management Unit - Senior High School
Support Team at k12@ched.gov. We value your feedback and
recommendations.
The Commission on Higher Education
in collaboration with the Philippine Normal University
This Teaching Guide by the Commission on Higher Education is licensed under a Creative Commons Attribution- NonCommercial-ShareAlike 4. International License. This means you are free to: Share — copy and redistribute the material in any medium or format Adapt — remix, transform, and build upon the material. The licensor, CHED, cannot revoke these freedoms as long as you follow the license terms. However, under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. NonCommercial — You may not use the material for commercial purposes. ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
Development Team Team Leader: Joselito G. Florendo. Writers: Carlsberg S. Andres, Arthur P. Barrido, Jr., Christopher B. Honorario Technical Editor: Daniel Vincent H. Borja Copy Reader: Fermin J. Villegas Cover Artists: Paolo Kurtis N. Tan, Renan U. Ortiz
Published by the Commission on Higher Education, 2016 Chairperson: Patricia B. Licuanan, Ph.
Commission on Higher Education K to 12 Transition Program Management Unit Office Address: 4th Floor, Commission on Higher Education, C. Garcia Ave., Diliman, Quezon City Telefax: (02) 441-0927 / E-mail Address: k12@ched.gov
Senior High School Support Team CHED K to 12 Transition Program Management Unit Program Director: Karol Mark R. Yee Lead for Senior High School Support: Gerson M. Abesamis Lead for Policy Advocacy and Communications: Averill M. Pizarro Course Development Officers: Danie Son D. Gonzalvo, John Carlo P. Fernando Teacher Training Officers: Ma. Theresa C. Carlos, Mylene E. Dones Monitoring and Evaluation Officer: Robert Adrian N. Daulat Administrative Officers: Ma. Leana Paula B. Bato, Kevin Ross D. Nera, Allison A. Danao, Ayhen Loisse B. Dalena Printed in the Philippines by EC-TEC Commercial, No. 32 St. Louis Compound 7, Baesa, Quezon City, ectec_com@yahoo
Consultants THIS PROJECT WAS DEVELOPED WITH THE PHILIPPINE NORMAL UNIVERSITY. University President: Ester B. Ogena, Ph. VP for Academics: Ma. Antoinette C. Montealegre, Ph. VP for University Relations & Advancement: Rosemarievic V. Diaz, Ph.
Ma. Cynthia Rose B. Bautista, Ph., CHED Bienvenido F. Nebres, S., Ph., Ateneo de Manila University Carmela C. Oracion, Ph., Ateneo de Manila University Minella C. Alarcon, Ph., CHED
Gareth Price, Sheffield Hallam University Stuart Bevins, Ph., Sheffield Hallam University
This Teaching Guide is mapped and aligned to the DepEd SHS Curriculum, designed to be highly usable for teachers. It contains classroom activities and pedagogical notes, and is integrated with innovative pedagogies. All of these elements are presented in the following parts:
- Introduction
- Highlight key concepts and identify the essential questions
- Show the big picture and concept maps
- Present the relevant vocabulary
- Connect and review prerequisite knowledge
- Clearly communicate learning competencies and objectives
- Motivation
- Give local examples and applications
- Engage in a game or movement activity
- Provide a hands-on/laboratory activity
- Connect to a real-life problem
- Instruction/Delivery
- Give a demonstration/lecture/simulation/hands-on activity
- Show step-by-step solutions to sample problems
- Use multimedia and other creative tools
- Give applications of the theory
- Focus on a specific story using the case study method
- Practice
- Discuss worked-out examples
- Provide easy-medium-hard questions
- Give time for hands-on unguided classroom work and discovery
- Use formative assessment to give feedback
- Enrichment
- Provide additional examples and applications
- Introduce extensions or generalisations of concepts
- Encourage analysis through higher order thinking prompts and reflection questions
- Allow pair/small group discussions to summarize and synthesize the learnings
- Evaluation
- Supply a diverse question bank for written work and exercises
- Provide alternative formats for student work: written homework, journal, portfolio, group/individual projects, student-directed research project
Parts of the
Teaching Guide
K to 12 BASIC EDUCATION CURRICULUM SENIOR HIGH SCHOOL – ACCOUNTANCY, BUSINESS AND MANAGEMENT (ABM) SPECIALIZED SUBJECT
K to 12 Senior High School ABM Specialized Subject – Fundamentals of Accountancy, Business and Management 1 May 2016 Page 1 of 7
Grade: 11 Semester: 2 nd Semester Course Title : Fundamentals of Accountancy, Business and Management 1 No. of Hours/ Semester: 80 hours/ semester
Course Description : 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.
CONTENT CONTENT STANDARDS PERFORMANCE STANDARDS LEARNING COMPETENCIES CODE
- Introduction to Accounting
The learners demonstrate an understanding of...
the definition, nature, function, and history of accounting
The learners shall be able to...
cite specific examples in which accounting is used in making business decisions
The learners...
- define accounting
ABM_FABM11-
IIIa- 2. describe the nature of accounting
ABM_FABM11-
IIIa- 3. explain the functions of accounting in business
ABM_FABM11-
IIIa- 4. narrate the history/origin of accounting
ABM_FABM11-
IIIa-
- Branches of Accounting
the varied branches and areas of accounting, particularly
financial accounting
management accounting
government accounting
auditing
tax accounting
cost accounting
accounting education
accounting research
make a list of business within the community on the types of accounting services they require
solve exercises in the identification of the branches of accounting described through the types of services rendered
differentiate the branches of accounting
ABM_FABM11-
IIIa-
- explain the kind/type of services rendered in each of these branches
ABM_FABM11-
IIIa-
- Users of Accounting Information
the external and internal users of financial information
solve exercises and problems on the identification of users of information, type of decisions to be made, and type of information needed by the users
cite users of financial information
define external users and gives examples
ABM_FABM11-
IIIa-
- define internal users and give examples
ABM_FABM11-
IIIa-
K to 12 BASIC EDUCATION CURRICULUM SENIOR HIGH SCHOOL – ACCOUNTANCY, BUSINESS AND MANAGEMENT (ABM) SPECIALIZED SUBJECT
K to 12 Senior High School ABM Specialized Subject – Fundamentals of Accountancy, Business and Management 1 May 2016 Page 3 of 7
CONTENT CONTENT STANDARDS PERFORMANCE STANDARDS LEARNING COMPETENCIES CODE
- perform operations involving simple cases with the use of accounting equation
ABM_FABM11-
IIIb-c- 18
- Types of Major Accounts
the five major accounts, namely, 1. assets 2. liabilities 3. capital 4. income 5. expenses
define, identify, and classify accounts according to the five major types
- discuss the five major accounts
ABM_FABM11-
IIId-e- 19 2. cite examples of each type of account
ABM_FABM11-
IIId-e- 20 3. prepare a Chart of Accounts
ABM_FABM11-
IIId-e- 21
- Books of Accounts the two major types of books of accounts, namely, journal and ledger
differentiate a journal from a ledger and identify the types of journals and ledgers
- identify the uses of the two books of accounts
ABM_FABM11-
IIIf- 22 2. illustrate the format of a general and special journals
ABM_FABM11-
IIIf- 23
- illustrate the format of a general and subsidiary ledger
ABM_FABM11-
IIIf- 24
- Business Transactions and Their Analysis As Applied to the Accounting Cycle of a Service Business a. Rules of Debits and Credits b. Journalizing c. Posting
the business transactions and their analysis, to include definition and nature of business transactions, t ypes of source or business documents, and the rules of debits and credits
identify business and nonbusiness transactions, enumerate the types of business documents, recite the rules of debit and credit, and apply these to simple cases
- describe the nature and gives examples of business transactions
ABM_FABM11-
IIIg-j- 25
- identify the different types of business documents
ABM_FABM11-
IIIg-j- 26
- analyze common business transactions using the rules of debit and credit
ABM_FABM11-
IIIg-j- 27
K to 12 BASIC EDUCATION CURRICULUM SENIOR HIGH SCHOOL – ACCOUNTANCY, BUSINESS AND MANAGEMENT (ABM) SPECIALIZED SUBJECT
K to 12 Senior High School ABM Specialized Subject – Fundamentals of Accountancy, Business and Management 1 May 2016 Page 4 of 7
CONTENT CONTENT STANDARDS PERFORMANCE STANDARDS LEARNING COMPETENCIES CODE
d. Preparation of a Trial Balance
- solve simple problems and exercises in the analyses of business transaction
ABM_FABM11-
IIIg-j- 28
- Business Transactions and Their Analysis As Applied to the Accounting Cycle of a Service Business a. Adjusting Entries b. Adjusted Trial Balance c. Preparation of Basic Financial Statements (Income Statement)
the accounting cycle of a service business
identify business and nonbusiness transactions, enumerate the types of business documents, recite the rules of debit and credit, and apply these in simple cases
- describes the nature of transactions in a service business
ABM_FABM11-
IVa-d- 29
- records transactions of a service business in the general journal
ABM_FABM11-
IVa- d -
- posts transactions in the ledger
ABM_FABM11-
IVa- d -
- prepares a trial balance
ABM_FABM11-
IVa- d - 5. prepares adjusting entries
ABM_FABM11-
IVa- d - 6. complete the accounting cycle
ABM_FABM11-
IVa- d - 12. Accounting Cycle of a Merchandising Business
the accounting cycle of a merchandising business to include the following: 1. Journalizing of transactions using the general and special journals, namely: sales journal, purchase journal, cash receipts journal and cash payments journal
prepare journal entries, post to the ledger, prepare the trial balance, worksheet, adjusting entries and complete the accounting cycle of a merchandising business.
- describes the nature of transactions in a merchandising business
ABM_FABM11-
IVe- j -
- records transactions of a merchandising business in the general and special journals
ABM_FABM11-
IVe-j- 36
K to 12 BASIC EDUCATION CURRICULUM SENIOR HIGH SCHOOL – ACCOUNTANCY, BUSINESS AND MANAGEMENT (ABM) SPECIALIZED SUBJECT
K to 12 Senior High School ABM Specialized Subject – Fundamentals of Accountancy, Business and Management 1 May 2016 Page 6 of 7
Code Book Legend
Sample: ABM_FABM11-IIIa-
LEGEND SAMPLE
First Entry
Learning Area and Strand/ Subject or Specialization
Accountancy, Business and Management Strand
Grade Level Grade 11 ABM_FABM
Uppercase Letter/s Component/ Topic Domain/Content/ Fundamentals of Accountancy, Business and Management 1
-
Roman Numeral *Zero if no specific quarter Quarter Third Quarter III
Lowercase Letter/s *Put a hyphen (-) in between letters to indicate more than a specific week
Week Week one a
-
Arabic Number Competency differentiate the branches of accounting 5
K to 12 BASIC EDUCATION CURRICULUM SENIOR HIGH SCHOOL – ACCOUNTANCY, BUSINESS AND MANAGEMENT (ABM) SPECIALIZED SUBJECT
K to 12 Senior High School ABM Specialized Subject – Fundamentals of Accountancy, Business and Management 1 May 2016 Page 7 of 7
References:
Anastacio, Ma. Flordeliza. Fundamentals of Financial Management (with Industry Based Perspective).( Manila: Rex Book Store, 2011).
Gilbertson, Claudia. Fundamentals of Accounting. 8th ed. (Australia: Cengage Learning, 2010).
Padillo, Nicanor, Jr. Financial Statements Preparation, Analysis and Interpretation. (Manila: GIC Enterprises, 2011).
Pefianco, Erlinda C. The Accounting Process: Principles and Problems. (Makati: Goodwill Trading, 1996).
Young, Felina C. Principles of Marketing. (Manila: Rex Book Store, 2008).
TABLE OF CONTENTS
- Lesson 1: Introduction to Accounting
- Lesson 2: Branches of Accounting
- Lesson 3: Users of Accounting Information
- Lesson 4: Forms of Business Organizations
- Lesson 5: Types of Business According to Activities
- Lesson 6: Accounting Concepts and Principles
- Lesson 7: The Accounting Equation
- Lesson 8: Types of Major Accounts
- Lesson 9: Books of Accounts
Accounting Cycle of a Service Business Pt. Lesson 10: Business Transactions and Their Analysis as Applied to the
Accounting Cycle of a Service Business Pt. Lesson 11: Business Transactions and Their Analysis as Applied to the
- Lesson 12: Accounting Cycle of a Merchandising Business
Fundamentals of Accountancy, Business, and Management 1
Introduction to Accounting
Content Standards The learners demonstrate an understanding of the definition, nature, function,
and history of accounting
Performance Standards The learners shall be able to cite specific examples in which accounting is used
in making business decisions.
Learning Competencies The learners shall be able to
define accounting (ABM_FABM11-IIIa-1)
describe the nature of accounting (ABM_FABM11-IIIa-2)
explain the functions of accounting in business (ABM_FABM11-IIIa-3)
narrate the history/origin of accounting (ABM_FABM11-IIIa-4)
Specific Learning Objectives At the end of this lesson, the learners will be able to define accounting and
describe its nature; explain the functions of accounting in business; give
examples of business transactions and decisions requiring the need for
accounting; and narrate the history of accounting
1
60 MINS
LESSON OUTLINE
Introduction Communicating learning objectives Review types of businesses
3
Motivation Examples of Service Businesses 2
Instruction Discussion 30
Practice Problem Sets 10
Enrichment Group Discussions 5
Evaluation Quizzes 10
Materials manila paper, colored markers
Accounting Theory (n.) Retrieved from http:// accountingtheory.weebly/nature-and-scope-of-- accouting
Valencia, E. and Roxas, G. (2009). Basic Accounting, 3rd ed. Valencia Education Supply
Valix, Conrado T. et. (2015). Financial Accounting, Vol. 1, First part. GIC Enterprises & Co. Inc.
Weygandt, J. et. al. (2012) Accounting Principles 10th ed. John Wiley & Sons (Asia) Pte. Ltd.
purchases of flour that will be used for baking
purchases of trucks needed to deliver the products RECORDING – this involves keeping a chronological diary of events that are measured in pesos. The diary referred to in the definition are the
journals and ledgers which will be discussed in future chapters.
COMMUNICATING – occurs through the preparation and distribution of financial and other accounting reports.
Discuss the nature of accounting According to Accounting Theory (accountingtheory.weebly/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 provides assistance to decision makers by providing them financial reports that will guide them in coming up with sound decisions.
Accounting is a process: A process refers to the method of performing any specific job step by step according to the objectives or targets. Accounting is identified as a process, as it performs the specific task of collecting, processing and communicating financial information. In doing so, it follows some definite steps like the collection, recording, classification, summarization, finalization, and reporting of financial data.
Accounting is both an art and a discipline. Accounting is the art of recording, classifying, summarizing and finalizing financial data. The word ‘art’ refers to the way something is performed. It is behavioral knowledge involving a certain creativity and skill to help us attain some specific objectives. Accounting is a systematic method consisting of definite techniques and its proper application requires skill and expertise. So by nature, accounting is an art. And because it follows certain standards and professional ethics, it is also a discipline.
Accounting deals with financial information and transactions: Accounting records financial transactions and data, classifies these and finalizes their results given for a specified period of time, as needed by their users. At every stage, from start to finish, accounting deals with financial information and financial information only. It does not deal with non-monetary or non-financial aspects of such information.
Accounting is an information system: Accounting is recognized and characterized as a storehouse of information. As a service function, it collects processes and communicates financial information of any entity. This discipline of knowledge has evolved to meet the need for financial information as required by various interested groups.
Discuss the function of accounting in business Ask the learners to comment on why accounting is considered as the language of business.
Accounting is the means by which business information is communicated to business owners and stakeholders. The role of accounting in
business is to provide information for managers and owners to use in operating the business. In addition, accounting information allows
business owners to assess the efficiency and effectiveness of their business operations. Prepared accounting reports can be compared with
3
industry standards or to a leading competitor to determine how the business is doing. Business owners may also use historical financial
accounting statements to create trends for analyzing and forecasting future sales.
Accounting helps the users of these financial reports to see the true picture of the business in financial terms. In order for a business to survive,
it is important that a business owner or manager be well-informed.
Let us now discuss the function of accounting in business. Mr. Juan is a retired government employee who is good at baking. One day he decides to put up a bakery shop in your barangay. He renovates a portion of his house to serve as the area for the production of bread. He purchases baking equipment and raw materials to produce five different types of bread. Mr. Juan also hires Jose to help him with the baking and, at the same time, to be in-charge of sales. Mr. Juan pays Jose on a weekly basis. Every day, Mr. Juan’s wife deposits the daily cash sales in their bank account at XY Savings Bank. With the help of accounting, what possible decisions or questions of Mr. Juan can accounting provide an answer to? _Possible Answers:
- Is my business earning? (profitability)
- How much daily or monthly sales do I need in order to recover my fixed cost? (break-even)
- Do I need to hire additional workers to help me with my production?
- Can I afford to set up a new store in another place? Where do I get the funds?
- Can I afford to pay a bank loan?_
Discuss the history of accounting 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 history of accounting is often seen as indistinguishable from the history of finance and business.
Following is the evolution of accounting:
The Cradle of Civilization Around 3600 B., record-keeping was already common from Mesopotamia, China and India to Central and South America. 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 The most important event in accounting history is generally considered to be the dissemination of double entry bookkeeping by Luca Pacioli (‘The Father of Accounting’) in 14th century Italy. Pacioli was much revered in his day, and was a friend and contemporary of Leonardo da Vinci. The Italians of the 14th to 16th centuries are widely acknowledged as the fathers of modern accounting and were the first to commonly use Arabic numerals, rather than Roman, for tracking business accounts. Luca Pacioli wrote Summa de Arithmetica, the first book published that contained a detailed chapter on double-entry bookkeeping.
4
PRACTICE (10 MINS) Divide the class into 2 groups. The first group will act out the definition of accounting while the second
group will act out the evolution/history of accounting.
ENRICHMENT (5 MINS) Go back to the unanswered question during your introduction of this topic.
Ask the learners the following questions: Is accounting important to you? Does it affect your daily
activities? How?
EVALUATION (10 MINS) Give a short quiz. Ask the following questions:
- Define accounting
Answer: Accounting is the process of IDENTIFYING, RECORDING and COMMUNICATING economic events of an organization for interested users.
- Give examples of decisions or questions that can be supported by accounting information.
_Suggested Answers:
- Is my business earning? (profitability)
- How much daily or monthly sales do I need in order to recover my fixed cost? (break-even)
- Do I need to hire additional workers to help me with my production?
- Can I afford to set up a new store in another place? Where do I get the funds? (financing_ _decisions)
- Can I afford to pay a bank loan?_
6
Teacher tip Offer a reward system for the best group or to learners who show outstanding performance.
Fundamentals of Accountancy, Business, and Management 1
Branches of Accounting
Content Standards The learners demonstrate an understanding of the varied branches and areas
of accounting, particularly:
Financial Accounting
Management Accounting
Government Accounting
Auditing
Tax Accounting
Cost Accounting
Accounting Education
Accounting Research
Performance Standards The learners shall be able to
make a list of business within the community on the types of accounting services they require.
solve exercises in the identification of the branches of accounting described through the types of services rendered.
Learning Competencies The learners shall be able to
Differentiate the branches of accounting. (ABM_FABM11-IIIa-5)
Explain the kinds/types of services rendered in each of these branches. (ABM_FABM11-IIIa-5)
7
60 MINS
LESSON OUTLINE Introduction Introduce the learning objectives 5
Motivation Trees and branches 5
Instruction Branches of Accounting 30
Practice Boardwork 10
Enrichment One question 10
Materials manila paper, colored markers
Resources Accounting Basics: Branches of Accounting (n.) Retrieved from investopedia/university/accounting/ accounting2
- Valencia, E. and Roxas, G. (2009). Basic Accounting, 3rd ed. Valencia Education Supply
- Valix, Conrado T. et. (2015). Financial Accounting, Vol. 1, First part. GIC Enterprises & Co. Inc.
- Weygandt, J. et. al. (2012) Accounting Principles 10th ed. John Wiley & Sons (Asia) Pte. Ltd.
Accountancy, Business, and Management 1
Course: Fundamentals of accounting (abm123)
University: Ateneo de Zamboanga University
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