CHAPTER 1

Introduction to Accounting

ACCOUNTING 1
by: Sheila D. Lee
Activity 1. Word Hunt
Accounting
 Jose Mercado’s Case
Cash In:
Borrowings ₱50,000
Personal Savings 10,000
Photocopying Revenues 10,000 ₱70,000

CASH IN vs. CASH

Cash Out:
OUT
Photocopying Machine
₱30,000
TECHNIQUE
Supplies
Rent
10,000
10,000
Salary 4,000
Business permits/ licenses 2,000 ₱56,000

Net Profit ₱14,000

 Financial Statements
1. Statement of Financial Position/
Balance Sheet
Financial Statements
2. Income Statement
 Financial Statements
3. Statement of Changes in Equity
 Financial Statements
4. Statement of Cash Flows
 Provide information
about..
1. Financial position
2. Financial
Performance
3. Cash Flows of a
Business
Business Transactions
Stakeholders
Business Transactions
Activity 2. Arrange Me and
Complete Me
Group Activity:
Arrange the letters to
come up with one word
and discover the
complete sentence
formed.
Definition of Accounting
Definition of Accounting
Definition of Accounting
 Functions of Accounting
1. To fulfill the stewardship function of the
management (or owners).
2. To help interested users come up with
informed decisions; and
3. To support daily operations of the
business.
“ Accounting is considered as the language
of business”
Functions of Accounting
Nature of Accounting

Systematic
Nature of Accounting

Systematic
 Difference between
Bookkeeping and Accounting