FABM1

1. Introduction of Accounting - definition, nature, function, and history

2. Branches of Accounting - financial accounting, management accounting, government accounting,
accounting education, accounting research
3. Users of Accounting - external & internal users of financial information
4. Forms of Business Organizations - sole propreitorship, partnership, corporation, vooperatives
5. Types of Business accrdg. to activities - service business, merchandising business, manufacturing business
6. Accounting Concepts & Principles
7. The Accounting Equation
8. Types of Major Accounts - Assets, Liabilities, Capital, Income, Expenses
9. Book of Accounts - Journal and Ledger
10. Business Transactions & their Analysis as applied to the Accounting Cycle of a Service Business -
definition and nature of business dicuments and the rules of debits & credits
A. Rules of debits and credits
B. Journalizing
C. Posting
D. Preparation of Trial Balance
11. Business Transaction and theri Analysis applied of Accounting Cycle of service business - adjusting
entries, adjusted trial balance, preparation of basic financial statements
12. Accounting cycle of a merchandising business - journalizing of transactions using the general and special
journals namely; sales journal, purchase journal, cash receipts journal, and cash payments journal
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INSERT PIC 27 TO 37
PART5)
FABM1
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What is analysis of transaction?
-it is the process of studying a transaction to determine it's economic effect (in terms of money) on the entity's
accounting equation (assets=liabilites+owners' equity). The economic effect may be an increase or decrease in
the assets, liabilities, and owners' equity. After every analysis, the equality in accounting equation is
maintained because for every transaction, there is an increase and a compensating decrease.
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ASSETS=LIABILITIES+OWNER'S EQUITY
(yan ang formula kapag hinahanap ang asset)
The equation shows there are two claimants or interests on the company's assets. They are the outsiders or
creditors and the insiders or entity owners. The accounting equation may be restated as follows:
ASSETS-LIABILITES=OWNER'S EQUITY
ASSETS-OWNER'S EQUITY=LIABILITIES
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