EMILIO AGUINALDO COLLEGE

Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
ISO 9001:2015 CERTIFIED

SENIOR HIGH SCHOOL QUALITY MANAGEMENT SYSTEMS

Fundamentals of Accountancy, Business and Management 1

Performance Task 1 – Lesson 1

Instruction: Answer the following questions.

Group Activity:

1. Scan your immediate environment for a few days. Generate a list of at least five (5) businesses of
various types within your community. Identify the types of accounting services each business
would require.

ANSWER
 All day mart (Grocery Store) – The type of accounting services it requires would be is a bookkeeping
because it has the responsibility of keeping records of the financial accounts of the business and
monitors how they received the payment. Bank Reconciliation the grocery store needs it services to
make sure that the financial transactions are recorded in the books and to alert the owner from
fraudulent activity. Payroll Processing it needs its services because it helps to take care properly on
paying of employees. Tax accounting its services will be needed since business would be paying
taxes. And lastly, Accounts Payable they need its services since they purchase goods and services
from other companies which can help to determine the needed payment.

 Pharmacy – The type of accounting services it requires would be is Bookkeeping because to keep
track of the records of the payments received and monitoring the payments. Tax accounting the
pharmacy needs it services because it would be helpful to keep on. Accounts Payable it needs its
services since the pharmacy purchase goods and services to buy medicine products.

 Wet market - The type of accounting services it requires would be is Bookkeeping to keep track on
the record of payments that will be receiving and to monitor on how they will be received. Tax
accounting its services will be needed since business would be paying taxes.

 Palawan (Pawn Shop) - The type of accounting services it requires would be is Bank reconciliation
because it needs special care since it handles money to keep record of the payments. Tax
accounting its services will be needed since business would be paying taxes.

 Benelli (Motorcycle shop) - The type of accounting services it requires would be is Bookkeeping to
keep track of the records of payment and monitors on how it received. Financial controller services it
needs it services since it’s a deal on working with clients if ever they buy their will be an assist on
what payment they should do. Payroll processing to know the tax rates and regulatory information’s.
Tax accounting its services will be needed since business would be paying taxes.

2. Why is accounting often referred to as the “language of business”?’

ANSWER
Accounting is often called the language of business because it is the language that managers
use to communicate the firm's financial and economic information to external parties such as
shareholders and creditors.

• VIRTUE • EXCELLENCE • SERVICE

 EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
ISO 9001:2015 CERTIFIED

SENIOR HIGH SCHOOL QUALITY MANAGEMENT SYSTEMS

3. Enumerate and distinguish the phases of accounting.

ANSWER
Recording is a basic phase of accounting that is also known as bookkeeping. In this phase,
all financial transactions are recorded in a systematical and chronological manner in the
appropriate books or databases. The classifying phase of accounting involves sorting and
grouping similar items under the designated name, category or account. This phase uses
systematic analysis of recorded data in which all transactions are grouped in one place. The
summarizing phase of accounting involves summarizing the data after each accounting period,
such as a month, quarter or year.The interpreting phase of the accounting process in concerned
with analyzing financial data, and is a critical tool for decision-making.

4. What constitutes the practice of accountancy in the Philippines?

ANSWER
Republic Act No. 9298
(May 13, 2004)
AN ACT REGULATING THE PRACTICE OF ACCOUNTANCY IN THE PHILIPPINES, REPEALING FOR
THE PURPOSE PRESIDENTIAL DECREE NO 692, OTHERWISE KNOWN AS THE REVISED
ACCOUNTANCY LAW, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.
5. State the qualifications of applicants for the CPA examinations.

ANSWER
SEC. 14. Qualifications of Applicants for Examinations. – Any person applying for
examination shall establish the following requisites to the satisfaction of the Board that he/she:

- Is a Filipino citizen;
- Has a good reputation and moral character;
- Has graduated with a degree of Bachelor of Science in Accountancy in a government-recognized
school, institute, college, or university;
- Has no criminal record or not been convicted of any criminal offense involving moral turpitude.

6. What are the distinguishing characteristics of the accountancy profession?

ANSWER
An Accountant requires a wide variety of skills and characteristics in order to succeed. Having a
strong sense of ethics. They must know right from wrong and display integrity in his or her accounting
activities. Constantly Learning . While accounts need to have a strong grasp of the basic, they must also
display interest in keeping up-to-date. Emphasizing Accuracy . Accountants must have developed the skill
of double checking their work to the point where it is second nature to them. Organizational Skills .
Accounts need to deal with a lot of paper work, numbers and data on a daily basis. Sense of
Accountability. A good quality of an accountant is to accept the result and any fallout of their work. Ability
to work In a team. Accountants must know how to work togwther to reach the organization’s goals.
Knowledge of the Field. Understanding the requirements, goals and the ways the business is being run is
vital to determining the right way to proceed with the accounting. Trustworthiness and Reliability.
Accountants deal with the financial health and condition of an organization, a confidential topic. Creativity.
They must be capable of developing fresh ideas and strategies to solve complex and unique issues.

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 EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
ISO 9001:2015 CERTIFIED

SENIOR HIGH SCHOOL QUALITY MANAGEMENT SYSTEMS

7. Distinguish between managerial accounting and financial accounting.

ANSWER
Financial Accounting and Managerial Accounting are two of the four largest branches of the
accounting discipline. Financial accounting is oriented toward the creation of financial statements, which
are distributed both within and outside of a company. Managerial accounting is more concerned with
operational reports, which are only distributed within a company.

8. Why is auditing the profession’s most significant service to the public?

ANSWER
Audit is an instrument, a tool of financial control, which is employed by the public or private
sector or an individual to safeguard itself against fraud, extravagance and more importantly to bring
credibility to the audited. According to International Organization of Supreme Audit Institutions audit is
defined as “Evaluation or examination of systems, operations and activities of a specific entity, to
ascertain they are executed or they function within the framework of certain budget, objectives, rules and
requirements.” This is a modern definition of audit in Public sector and does not constrict itself with only
cash audit, which was the case originally.

For sound and effective functioning of government and to ascertain that the benefit of public
funds being used, reach the lowest strata of society and to every individual, audit is an indispensable tool.
It helps secure accountability of the executive to the Parliament and towards the public in general. The
legislature can exercise control over the executives and verify that the public resources have been utilized
responsibly, for the purpose intended and funds raised through various sources like taxes reach
government fully.

Auditing provides assurance to investors and creditors that company funds are handled
appropriately. Auditors protect the public from investing in companies that use corrupt business practices
or that attempt to defraud investors with false financial statements. By reviewing financial statements and
digging into accounting records, auditors can determine whether the financial statements and records
accurately depict the company's true financial profile.

9. To your mind, why is business ethics important? Cite some ethical dilemmas.

ANSWER
In part, that’s because technology and digital communication have made it easier to identify and
publicize ethical missteps. To avoid the negative implications, companies are devoting more resources to
business ethics.
Here are some ethical dilemmas:
- Life or Death Impact
- Following the Rules
- The Cost of a Cure
- Disadvantaging Yourself to Do What’s Right
- Personal Relationships

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