PPT SUMMARY (WEEK 1)- ACC 101
August 20, 2021
 Accounting
- Has evolved, as in the case of medicine and
law, in response to the social and economic
needs of society. As business is more
complex, accounting develops new
techniques to meet the ever-increasing needs
for financial information.
- Is an information system that measures,
processes and communicates financial
information about an economic entity
(Statement of Financial Accounting
Concepts No.1 )
- Is the process of identify9ing, measuring and
communicating economic information to
permit informed judgements and decisions
by the users of information (American
Accounting Association)
- Is an art of recording, classifying and
summarizing in a significant manner and in
terms of money, transactions and events,
which are, in part at least, of a financial
character, and interpreting the results
thereof (American Accounting Association)
- Is a service activity. Its function is to provide
quantitative information, primarily financial
in nature, about economic entities that is
intended to be useful in making economic
decisions (Statement of Financial
Accounting Standards No.1)
 Accounting History- important to
accounting pedagogy, policy and practices.
- Primitive accounting started when people
have counted and kept records throughout
history.
- The origin of keeping accounts has been
traced as far as 8500 B.C
- During Middle Ages, Arabic numerals were
being used as a result of trade with the Near
East allowing columns of numbers to be
added and subtracted.
- Luca Pacioli, is generally associated with
the introduction of double entry
bookkeeping.
- Information age introduce the electronic
spreadsheet.
 Accounting Profession
- Republic Act 9298 otherwise known as
Philippine Accountancy Act of 2004. A BS
Accountancy graduate who took the
licensure examination and pass the board
exam is given a license to practice as a
professional Certified Public Accountant
(CPA).
 Board of Accountancy (BOA)
- Is under the supervision and administrative
control of Professional Regulation
Commission (PRC).
- The board is composed of a chairman and
6 members appointed by the President of
the Philippines.
- The board elects a vice chairman from
among its members of a term of 1 year.
- They will formulate the CPA licensure
examination will be given every May and
October.
 Requirements for CPA Examination
1. Filipino citizen
2. Of good moral character
3. Holder of the degree of BS Accountancy from
school duly recognized and accredited by
CHED
4. Has not been convicted of any criminal
offense involving moral turpitude.
5. Must submit the following documents
- PSA Birth certificate
- PSA marriage certificate for married female
applicants
- Diploma
- Transcript of records
- NBI Clearance
- Money
 Subject of the CPA licensure exam
1. Financial accounting and reporting
2. Advanced financial accounting and reporting
3. Auditing
4. Taxation
5. Management advisory services
6. Regulatory framework for business
transactions
 Ratings in the licensure examination
- The examinee must earn a general weighted
average of seventy-five percent (75%) with
no grade lower than 65% in any given
subject. 
- In case the applicant did not obtained an
average of 75% but obtained 75% and above
in at least 4 subjects shall receive a
conditional credit for the subject passed.
- The candidate shall take an examination in
the remaining subjects within 2 years from
the preceding examination. 
- Upon examination and the candidate fails to
obtain at least a general average of 75% and a
rating of at least 65% in each of the subjects
reexamined, the candidate shall be
considered as failed in the entire
examination.
 Refresher Course
- Any candidate who fails in two (2)
complete CPA Board Examinations shall
be disqualified from taking another set
of examinations unless the candidate
submits evidence to the satisfaction of
the Board of Accountancy that he/she
enrolled in and completed at least 24
units of the subject given in the licensure
exam.

 Professional Organization
- The Philippine Institute of Certified
Public Accountants (PICPA) is the
integrated national professional
organization of CPA’s in the Philippines
accredited by BOA and PRC.
 Scope of Practice of Accountancy/
Accountancy Profession
- The professional accountant is presented
with a myriad of opportunities. The demand
for accounting services has increased with
the increase in number, size and complexity
of business. The accountants may be
engaged in any of the following areas of
competence.
1. Practice of Public Accountancy
- Rendering professional services as CPA to
clients on a fee basis. Professional
Organization named as Association of CPA’s
in Public Practice (ACPAPP)
2. Practice in Commerce and Industry
- They are CPA’s who are employed by
various business entities. Professional
organization named as Association of CPA’s
in Commerce and Industry (ACPACI)
3. Practice in Education/Academe
- It constitutes CPA’s in an educational
institution which involves teaching of
Board subjects and other technically
related subjects. Professional organization
named as Association of CPA’s in Education
(ACPAE)
4. Practice in Government
- A person who holds or is appointed a
position in an accounting professional
group in government. Professional
organization named as Government
Association of CPA’s (GACPA)
books in providing information for
managerial planning and control.
4. Financial Accounting
- It focused on the recording of business
transactions and the periodic preparations
of reports on financial positions and results
of operations.
5. Financial Management
- It focuses on setting financial objectives,
making plans, obtaining the finance needed
and safeguarding all the financial
resources of the entity.
6. Management Accounting
- It incorporates cost accounting data and
adapts them for specific decisions which
management may be called upon to make. A
management accounting system
incorporates all types of financial and
financial information from a wide range
of sources.
7. Taxation
- It includes the preparation of tax returns
and the consideration of the tax
consequences of proposed business
transactions or alternative courses of
actions.
8. Government Accounting
- It is concerned with the identification of
the sources and uses of resources consistent
with the provision of city, municipality,
provincial or national laws.

 Branches of Accounting
1. Auditing
- Auditing is the accountancy profession’s
most significant service to the public.  An
external audit is the independent
examination that ensures the fairness
and reliability of the reports that
management submits to users outside the
business entity.  Internal auditing
ensures the accuracy of business records,
uncover internal control problems and
identify operational difficulties.
2. Bookkeeping
- It is a mechanical task involving the
collection of basic financial data.
- The data are first entered in the
accounting records or books of accounts,
journal and ledger.
3. Cost Bookkeeping and Cost Accounting
- Cost bookkeeping is the process that
involves the recording of cost data in
books of accounts.
- Cost accounting makes use of those data
once they have been extracted from the cost