ICT 141: Principles of Accounting First Semester 2021 -2022

Course Title: Principles of Accounting

I. Module 1: Definition of Accounting

Estimated Time: 3 hours (Week 2)
1) Define Accounting.
2) Describe the nature, purpose, and history of accounting.

II. Module Introduction/Rationale:

This module introduces you to the definition, nature, purpose, and history of accounting.

III. Module Outcomes:

At the end of the topic the students must have:
1) Define Accounting.
2) Describe the nature, purpose, and history of accounting.

IV. Lesson One: Accounting

V. Lesson Outcomes:
1) Define Accounting.

Engage
Do you have an idea what accounting is? If yes, can you share your idea? Go to www.menti.com and
use the designated code.

Explore
Click the link https://www.youtube.com/watch?v=dbeEeKA_3UQ and
https://www.youtube.com/watch?v=dbhZSrTdFlU.

Explain

ACCOUNTING
Accounting is the accurate recording, reporting and interpreting of financial data on business transactions
in accordance (Virgilio, 2018) with generally accepted accounting principles(GAAP).
Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as 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.
Accounting is both a science and an art. It is a science because there are rules on recording, reporting
and interpreting of business transactions. It is also an art because it is a skill in using the generally
accepted accounting principles.

Elaborate

Financial planning for individuals is important. For example, you are a student which has a weekly
allowance. How will you budget your allowance?

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 ICT 141: Principles of Accounting First Semester 2021 -2022

Evaluate
Worksheet No. 1

Name: ____________________________________________________________
Course, Year and Section:_______________________________ Date: __________

Answer as directed. Write your answer on the space provided.

1) Define accounting.

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 ICT 141: Principles of Accounting First Semester 2021 -2022

Lesson Two: Nature, Purpose, and History of Accounting

V. Lesson Outcomes:
1) Describe the nature, purpose, and history of accounting.

Engage
Can you share your idea on the nature of accounting? Go to www.menti.com and use the designated
code.
Can you share your idea on the purpose of accounting? Go to www.menti.com and use the
designated code.

Explore
Click the link https://www.youtube.com/watch?v=AiL-gu0LLcQ.
https://www.youtube.com/watch?v=9jOh0xU119Q
https://www.youtube.com/watch?v=YWD8wB2zFXw
https://www.youtube.com/watch?v=HAL0sBd9oyg and
https://www.youtube.com/watch?v=cU1n4f36LX0.

Explain

THE NATURE, PURPOSE, AND HISTORY OF ACCOUNTING

THE NATURE OF ACCOUNTING

1) Accounting is a service activity which provides quantitative information which is primarily

financial in nature, about economic entities intended to be useful in making economic decisions
and in making reasoned choices among alternative courses of action.
2) Accounting is a process. A process refers to the methods of performing any specific job step by
step according to the objectives or target. Accounting is identified as a process which involves
gathering, recording, classifying, summarizing, interpreting and disseminating economic
information in chronological and systematic ways.
3) Accounting is an art and a discipline. It is more of an art than a science. Art means the way of
accomplishing something. Accounting is a systematic method comprising certain techniques, and
its proper application requires applied skill, expertise and creative judgement. So by nature
accounting is an art. It is a discipline because it follows certain standards and professional ethics.
4) Accounting deals with financial information and transactions. After gathering, recording,
summarizing financial transactions, the result will be finalized for a specific period, for conveying
them to their users.
5) Accounting is an information system. Accounting is recognized and characterized as a
storehouse of information. It collects, stores, processes and communicates accounting
information of any entity, that is used by decision makers.

PURPOSE OF ACCOUNTING

The purpose of Accounting is to provide quantitative information which is primarily financial in nature,
about economic entities intended to be useful in making economic decisions and in making reasoned
choices among alternative courses of action. The information includes results of operations, financial
position, solvency, liquidity and cash flows.

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 ICT 141: Principles of Accounting First Semester 2021 -2022

Economic entity is a separately identifiable organization which makes use of resources to achieve its
goals and objectives. It may be for profit or non-profit.

HISTORY OF ACCOUNTING

See links above.

Elaborate

Where will you apply accounting in your life as a student?

Evaluate

Worksheet No. 2

Name: ____________________________________________________________

Course, Year and Section: _______________________________ Date: __________

Answer as directed. Write your answer on the space provided.

1) Describe the nature and purpose of accounting.

References:
 Rabot, Bernabe Donato Jr. and Malco, Ma. Theresa De Francesca. Accounting Skills and
Bookkeeping Principles Workbook for K-12 Senior High School. (2019) Great Books Trading.
 Reyes, Virgilio D. The Fundamentals In Accounting 2018th Edition (2018). GIC Enterprises Co, Inc

Online References:
https://www.youtube.com/watch?v=dbeEeKA_3UQ
https://www.youtube.com/watch?v=dbhZSrTdFlU
https://www.youtube.com/watch?v=AiL-gu0LLcQ
https://www.youtube.com/watch?v=9jOh0xU119Q
https://www.youtube.com/watch?v=YWD8wB2zFXw
https://www.youtube.com/watch?v=HAL0sBd9oyg
https://www.youtube.com/watch?v=cU1n4f36LX0

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