FABM

Module 1
Activity 2
~ Yes. Because from what I understand in the module, Accounting is a
systematic process of identifying, recording, measuring, classifying,
verifying, summarizing, interpreting and communicating financial
information. And that is the reason why it is really important that we
know the importance of accounting, it also help us in many ways.
Accounting affects my daily activities when it comes in Budgeting, it
helps me and my family to control our finances everyday, it’s easy and
definitely a helpful way for us to properly manage our daily expenses.
And in Spending, we always make sure to leave money left over in case
of an emergency or for savings should no unexpected emergencies
occur. That’s why Accounting is very important in my daily activities, not
just me but to all of us.

Assessment
1. I think it’s the manager, because from what I know managers are the
ones who work to perform functions like planning, organizing, staffing,
directing and controlling, and they need more detailed information in
order to support their decisions.

2. In my opinion, the banks or creditors are the ones who needs

accounting information the most. It is because creditors are central on
how every business’ financial system operates. And base on the module,
creditors is for determining the credit worthiness of an organization,
that’s why for me they need accounting information the most.

3. Internal users of accounting information are those who are involved in

planning, organizing and running the business. They need more detailed
information on a timely basis in order to support their decisions. While
the External users of accounting information are those individuals or
organizations outside a company who are interested in its financial
information.
Module 2
Assessment
1. A rider from Mura Mart has a delivery from Naga City to Pamplona.
The expenses that come with his deliveries should be the allowance that
his manager gave him. If the rider buy food for his lunch before he
deliver the item or the package, it should not be included as part of the
company's expenses.

2. When a tenant paid for his monthly rent, electricity bill, and water bill,
the landlord should gave his tenant a receipt and also his own copy to
represent as an evidence.

3. The Grand Master Mall wants to expand their business and wants to
open a second location. They purchased an office building for
₱5,102,000. So the price that should be recorded is the exact amount
that is purchased which is ₱5,102,000.

4. A tenant paid rent (April 2020 to May 2020) in advance to her landlord
on January 2020. In this case rent expenses belong for the period of April
2020 to May 2020, but actually, were paid on January 2020. So,
therefore, it cannot recognize expenses in January 2020.

5. A person came the office for meeting with any company's employee.
Accountant will give one glass of coffee. It cost is few cents. It is
immaterial, it is better to record it in rough page and show total cost of
milk of month as single entry in cash book when you will pay the
monthly bill.
Module 3
What I have learned

~As a student and as a consumer, Accounting Equation helps me

in doing something that involves money. For example is when my
mom is going to the grocery and I have to list all the items that we
will purchase in the store. I carefully count my change to make
sure that there is no overage or shortage. Also when it comes to
budgeting my money, it helps me avoid unexpected shortages due
to overspending. Accounting equation’s formula is Assets is equal
to Liabilities plus Equity, it tells us that what we own less what we
owe others is equity. I already mention some transactions that I
encounter like using our cash to pay for our bills or our groceries,
and when we pay off our debts. Additionally, Accounting Equation
applies in our lives in many ways; in paying, in purchasing, and it
maintains and expands the financial health of a business.
6.