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Essay - Accounting

Answer the following questions: 1. Why is accounting often referred t...
Course

Statistics (MAT 1000)

93 Documents
Students shared 93 documents in this course
Academic year: 2021/2022
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University of Perpetual Help System DALTA

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  1. Why is accounting often referred to as the language of business?

First, to define "language", it is simply the medium of communication. And in a similar manner, "accounting" is often referred to as the language of business because it is a method used in communicating different business transactions, financial records, and financial reports. It is used to help people from inside and outside a business to easily understand the position and condition of a business, or to the money involved in the business.

Also, it provides the decision-makers with adequate information for them to determine what decisions are healthy for the present and future of the company. After an accounting report is presented and analyzed, it must be used to come up with useful decisions.

Lastly, language requires the use of words, grammar, and terms or jargons. It's quite the same to accounting where there are specific terminologies, principles, and concepts mainly used in the process of making accounting reports and records.

  1. What is globalization? To your mind, what benefits will it bring you?

Globalization is the increased connectedness and interdependence of people, products, information, technology, governments, and economies of different nations and cultures worldwide. This process is possible through international and domestic trade and investments.

For me I can benefit from it through the potential economic development that it will bring to our country, and perhaps to our local community. It will also provide me more job opportunities and the opportunity to prosper and apply the skills that I will acquire while studying. It will also allow our nation to establish agreements to promote our goods and services internationally. And I believe that every time our country improves, the citizens will continue to benefit from it in some ways.

  1. What are MSMEs? What purpose does it serve for economic development?

An MSME in the Philippines is defined as any business activity or enterprise engaged in industry, agri-business and/or services that has: (1) an asset size (less land) of up to PhP100 million; and (2) an employment size with less than 200 employees (senate.gov).

It is a very essential factor in economic development because it provides more job opportunities to the lower sector of the economy, it allows industrialization, it aids to the development of entrepreneurial skills and innovation, allows the use of local and indigenous resources, and is vital in creating new industries in the country. Also, it will help the local sector to sell local raw materials and promote local products and they will be able to partner with larger firms, which in turn will give job opportunities to locals as well.

MSMEs will drive the country to create more ideas and innovations which will provide us wealth, income, and employment.

  1. What are the types of business? Distinguish them.
  • There are three types of business; service business , merchandising business , and manufacturing business.

Service businesses offer professional skills, services, advise, and consultations to earn profit. For instance, parlor shops managed by professionals in the beauty industry that offer haircut in exchange for money.

The next is merchandising business which is a business type that buys various products in wholesale or bulk from manufacturing companies, then sells it in retail. It is commonly known as the 'buy and sell' business.

And the last one is the manufacturing business that buys raw materials from their suppliers then turn it into products, this business type is the biggest among the three.

5 three definitions of accounting.

  • Accounting is an art and discipline. It is the art of identifying, recording, and communicating economic events of an organization. And it is a discipline that observes professional ethics and standards.
  • Accounting is an information system that provides a wide range of financial information of an organization; it simply determines the profit or loss.
  • Accounting is a science that has systematic principles and techniques, and follows a structured way to come up with financial findings.
  1. Enumerate and distinguish the four phases of accounting. The four phases of accounting are recording, classifying, summarizing, and interpreting.
  • Recording is also known as the bookkeeping. At this phase, all business transactions are recorded systematically and chronologically. This is done to prepare the financial statements which requires the presence of assets, liabilities, ledgers, journals, and other supporting documents such as checks and invoices.
  • Next is classifying , which involves grouping similar items or transactions into their designated accounts or category. For instance, classifying which expenses belong to personal and business expenses.
  • Then, the other phase of accounting is summarizing. This is the process of summarizing data from each accounting period (month, quarter, or year) in ways that it is understood easily by the users of the accounting statements. This may be done through the use of visual elements or graphs.
  • Lastly, the other phase of accounting is interpreting. This phase is vital in decision making, in which all the accounting statements is analyzed to make meaningful judgments. This is done through the consideration of the present and future conditions and position of the company or business.
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Essay - Accounting

Course: Statistics (MAT 1000)

93 Documents
Students shared 93 documents in this course

University: University of Perpetual Help System DALTA

Was this document helpful?
1. Why is accounting often referred to as the language of business?
First, to define "language", it is simply the medium of communication. And in a similar manner,
"accounting" is often referred to as the language of business because it is a method used in communicating
different business transactions, financial records, and financial reports. It is used to help people from inside
and outside a business to easily understand the position and condition of a business, or to the money involved
in the business.
Also, it provides the decision-makers with adequate information for them to determine what
decisions are healthy for the present and future of the company. After an accounting report is presented and
analyzed, it must be used to come up with useful decisions.
Lastly, language requires the use of words, grammar, and terms or jargons. It's quite the same to
accounting where there are specific terminologies, principles, and concepts mainly used in the process of
making accounting reports and records.
2. What is globalization? To your mind, what benefits will it bring you?
Globalization is the increased connectedness and interdependence of people, products, information,
technology, governments, and economies of different nations and cultures worldwide. This process is
possible through international and domestic trade and investments.
For me I can benefit from it through the potential economic development that it will bring to our
country, and perhaps to our local community. It will also provide me more job opportunities and the
opportunity to prosper and apply the skills that I will acquire while studying. It will also allow our nation to
establish agreements to promote our goods and services internationally. And I believe that every time our
country improves, the citizens will continue to benefit from it in some ways.
3. What are MSMEs? What purpose does it serve for economic development?
An MSME in the Philippines is defined as any business activity or enterprise engaged in industry,
agri-business and/or services that has: (1) an asset size (less land) of up to PhP100 million; and (2) an
employment size with less than 200 employees (www.senate.gov.ph).
It is a very essential factor in economic development because it provides more job opportunities to the
lower sector of the economy, it allows industrialization, it aids to the development of entrepreneurial skills
and innovation, allows the use of local and indigenous resources, and is vital in creating new industries in the
country. Also, it will help the local sector to sell local raw materials and promote local products and they will
be able to partner with larger firms, which in turn will give job opportunities to locals as well.
MSMEs will drive the country to create more ideas and innovations which will provide us wealth,
income, and employment.

Students also viewed

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