ACTG1A

(Fundamentals of Accounting Theory and Practices)

MODULE 1
ACCOUNTING AND ITS ENVIRONMENT

Jon Jon G. Pangilinan, CPA

Instructor

November 2013 March 2014

Table of Contents

CHAPTER 1 Accounting and Its Environment

A. Table of Contents

B. Objective

C. Introduction to accounting .

Information Technology Definition

Why do IT needs accounting? .

Definitions of accounting.

Basic purpose of accounting

Four (4) phases of accounting .

Branches of Accounting .

Auditing
Bookkeeping
Cost Bookkeeping, Costing and Cost Accounting
Financial Accounting
Financial Management
Management Accounting
Taxation
Government Accounting
Forms of Business Organizations

Purpose of business organizations

Micro, small and medium enterprises .

Activities in business organizations .

Fundamental Concepts .

Criteria for general acceptance of an accounting principle

Basic accounting principles

D. Exercises

E. Answers to exercises .

F. Reference

CHAPTER 2 The Accounting Equation and Double Entry System

A. Objectives

B. Introduction to Accounting Information System .

Three types of Accounting Information System

Objective of Financial Statements

C. Main Content
The Accounting Information System .

Components of Financial Statements .

Objective of Financialt Reporting

Users and their Information Need

Elements of Financial Statements

Recognition of Elements (Recognition Principles) .

The Account

Debits (Dr) and credits (Cr)

Normal Balance

Statement of Financial Position .

Income Statement .

D. Self Assessment Exercises .

E. Answers to Self Assessment Exercises .

F. Reference

Accounting Equation

Typical Account Titles Used

CHAPTER 3

Business Transactions

Table of Contents .

A. Objective

B. Introduction

Types and Effects of Business Transactions

Accounting for Business Transactions

Use of T-Accounts

Illustration

C. Self-Assessment Exercises .

D. Answer to Self-Assessment Exercises

E. Reference

CHAPTER 4

Recording Business Transactions

A. Objective

B. Main Content

Transaction Analysis

The Accounting Cycle

Source Documents

The Journal .

Simple and Compound Entry

The Ledger .

Chart of Accounts .

Posting

Ledger Accounts After Posting .

The Trial Balance .

D. Answer to exercises .

E. Reference

C. Exercises

CHAPTER 5
CHAPTER 6
CHAPTER 7
CHAPTER 8