Republic of the Philippines

Department of Education
Caraga Administrative Region
DIVISION OF AGUSAN DEL NORTE
Carmen District 1

WEEKLY LEARNING ACTIVITY SHEET

Name of Teacher : Glorielyn L. Lusterio

School : Senior High School in Carmen/340204
Division : Agusan del Norte

Learning Area: Fundamentals of Accountancy, Business and Management 1

Grade Level: Grade 11
Quarter: Quarter 1
Most Essential Learning Define accounting
Competency (MELC): Describe the nature of accounting
Narrate the history/origin of accounting
Define external users and give examples
Define internal users and give examples.
Code: (ABM_FABM11-IIIa-1)
(ABM_FABM11-IIIa-2)
(ABM_FABM11-IIIa-4)
(ABM_FABM11-IIIa-7)
(ABM_FABM11-IIIa-8)
Month: August 2020
Week Covered Week 1 (August 24-28, 2020)
Title of the Activity Activity No. 1: Choose your best choice
Activity No. 2: True or False
Activity 3: Classification
Objective(s):

Materials Activity sheets / activity notebook, tables, pen, online video (YouTube)
Note: This activity sheet can be used with video lesson and printed
materials.
Procedures Accounting is a system that identifies, records, and communicates
relevant economic events to interested users. Its underlying purpose
is to provide financial information and it is capable of being
expressed in monetary terms.
Nature of Accounting: Accounting is a process; an art; deals with
financial information and transactions; a means, not an end; and an
information system.
Functions of Accounting on business: Keeping systematic record of
business transactions; protecting properties of the business;
communicating the results to various parties interested in or
connected in the business; and meeting legal requirements.
History of Accounting: From its early development in Mesopotomia
to the modern accounting system used in the present day.
Users of financial information include both internal and external
users. Internal users include owners, investors, stockholders,
management and employees. External users include financial
institutions, creditors, government, and potential investors and
creditors.
Type of User Definition Example of Decisions made using
Users accounting
information/Benefits
from accounting
information
Customers Main source of Patrons, Whether or not to build
income of clients, relationship with the
businesses; people business, to have any
acquire goods acquiring dealings with the
and services goods or business
for a fee services of a
company for
a fee
Creditors Providers of Banks, Whether or not to lend
 additional lending resources to the
funds when institutions, business, try to see if
the initial wealthy the business is not very
investment of individuals; risky before lending
owners is sometimes funds
exhausted; the
lend resources government
to businesses can also lend
usually in the resources to a
form of money company
Potential Providers of Wealthy Whether or not to
Investors additional individuals, invest in the business,
funds when other primary concern is the
the initial businesses ability of the business
investment of planning to to provide acceptable
owners is invest returns
exhausted;
invest
resources in
the business
hoping to earn
decent returns
Government An external Different Oversees business
user whose government operations with the end
primary role is agencies, goal of improving the
to regulate taxing economy; checks the
businesses; authorities, accuracy of the
studies government financial statements to
financial officials compute for the correct
statements to amount of taxes
determine the payable
amount of
taxes payable
Academe Uses Professors,Uses accounting
accounting lecturers, information in the
information students, and
teaching of
primarily for researches accountancy;
academic researches loopholes
purposes and possible
improvements in the
field of accountancy
General Citizens and Common Concerned with the
Public residents of people not overall performance of
the country connected the economy; use
even though with the financial information to
they do not company estimate economic
plan to performance
transact with
the business;
use financial
statements to
gauge the
condition of
the economy
Management Employees Board of Uses financial
that can make directors, top information in making
decisions for management, business decisions;
the company; middle-level allows management to
considered the managers, identify problems
brain of the supervisors immediately and to
company. respond accordingly
Employees Persons in the Laborers, Check if the business is
company aside field workers, profitable enough to
from managers non- provide compensation
and owners or managerial and other benefits
stockholders; employees
do not have
authority to
implement
decisions
Owners or Existing Founders of Mainly concerned with
Stockholders investors of the the company, the returns earned
company; owners, from their investment;
concerned stockholders, owners taking active
mostly with partners, roles in the operations
 the profits of proprietors of the business; also
the company make decisions

Activity No. 1 Multiple Choice: Choose the letter of the best answer.
Write the chosen letter on a separate sheet of paper.

1. Which of the following is NOT a step in the accounting process?

A. Identification
B. Communication
C. Recording
D. Verification
2. Which of the following is NOT a relevant economic event?
A. An agent who attended to the concern of a complaining
customer
B. Patricia, manager of Company X, who sold an abandoned
building of her company
C. Company Y which borrowed P5M from a bank due to tight
financial conditions
D. Company Z which paid its employees their salaries for the
month of January
3. Which of the following does NOT show one of the main functions of
accounting?
A. Fred prepared a report to be submitted to the taxing
authorities.
B. John recorded the purchase of an equipment in the
accounting books immediately after purchase
C. Jason prepares financial reports monthly for the company’s
stakeholders
D. Allen canvassed the price of a sewing machine to be used in
the company’s operations.
4. Which of the following statements describes the accounting process?
A. It involves identifying relevant economic events
B. Recording economic events is an essential part of the
accounting process
C. The accounting process is not complete if the financial
information is not communicated to interested
users
D. All of the above
5. Which is the most important step in the accounting process?
A. Identification
B. Recording
C. Communication
D. All steps are equally important
6. Who is considered as the father of modern accounting?
A. Queen Victoria
B. Luca Pacioli
C. Augustus
D. Suetonius
7. Which order of events correctly portrays the history of accounting?
A. Early development in Mesopotamia-Development in the
Roman Empire-Dissemination of Double-Entry bookkeeping in
the 14th century Italy-signing of charter by Queen Victoria-
Formation of accounting standards such as PAS and PFRS
B. Development in the Roman Empire-Early development in
Mesopotamia-Dissemination of Double-Entry bookkeeping in
the 14th century Italy-signing of charter by Queen Victoria-
Formation of accounting standards such as PAS and PFRS
C. Early development in Mesopotamia-Development in the
Roman Empire-Dissemination of Double-Entry bookkeeping in
the 14th century Italy-Formation of accounting standards such
as PAS and PFRS-signing of charter by Queen Victoria
D. Early development in Mesopotamia-Development in the
Roman Empire-signing of charter by Queen Victoria-
Dissemination of Double-Entry bookkeeping in the 14 th century
Italy- Formation of accounting standards such as PAS and
PFRS
8. Which of the following is mostly used by accountants in communicating
the results of operations to outside
parties?
A. Performance Memos
B. Bulletin board postings
C. Public Announcements of the results of operations
D. Financial Statements
9. What profession does NOT use accounting information at all?
A. Entrepreneurs
 B. Economists
C. Government Officials
D. None of the above

10. Who is the person responsible for the process of identifying, recording,
and communicating economic
events of an organization?
A. Manager
B. Accountant
C. Bookkeeper
D. Treasurer
11. Which of the following is false?
A. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to external users only
B. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to internal and external users.
C. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to internal users only
D. a and c only
12. This branch of accounting focuses on creating value for the business
by providing information used in the Financial accounting and
management accounting fields.
A. Accounting Education
B. Cost Accounting
C. Tax Accounting
D. Auditing
13. Which of the following can be considered as an internal user?
A. Board of Directors
B. Creditors
C. Investors
D. Customers
14. Which of the following is a purpose of auditing?
A. To ensure that the financial statements are free from errors
B. To check the presentation of the financial statements
C. To enhance the credibility of the financial statements.
D. None of the above
15. Financial statements that undergo the process of auditing are called
A. Audited financial statements
B. Certified financial statements
C. Qualified financial statements
D. Financial statement; as is
16. Which of the following is NOT considered an internal user of
accounting information?
A. Owners of a business
B. Senior partners of an audit firm
C. Suppliers
D. Field workers
17. Which of the following is NOT considered an external user of
accounting information?
A. BIR officials
B. Customers
C. Production supervisor
D. A student of accountancy
18. This group of users of accounting information invested resources to the
company with hopes of earning acceptable returns.
A. Creditors
B. Government
C. Potential investors
D. Owners or stockholders
19. Which of the following information in a company’s financial statements
concerns creditors?
I. Amount of profit
II. Borrowing of a company
III. Assets of a company
a. I only
b. I and II only
c. II and III only
d. All of the above
20. Which of the following does NOT fall under the category of customer?
A. Daniel, a client of SGV Auditing Firm
B. Banjo, a regular purchaser of deodorant in Aling Nelia’s
Sari-sari store
 C. Ryan, an individual collecting annual payments from
Company X
D. Jerome, a loyal gamer in NET X Computer Shop
21. What is most likely to happen when companies are experiencing
financial difficulties?
A. Employees are motivated to work to achieve the company’s
goals.
B. Creditors will be more willing to lend to the company to help
overcome its financial difficulties.
C. Researches will lose interest in the company since they
mostly study companies that are successful
D. Investors will postpone or cancel their investments.
22. Creditors differ from potential investors in what aspect?
A. Creditors are wary of the riskiness of a company
B. Wealthy individuals can only invest not lend to a company.
C. Creditors received fixed amount of fee in their loans to the
business.
D. Creditors are exposed to more risks than investors.
23.Which of the following is false about the owners of a business?
A. Owners of a business are concerned with the profit levels of
the company.
B. Owners of a business are not allowed to take managerial
roles in the company.
C. Some owners do not participate in the management of the
business.
D. Owners of a business can also be creditors of the company.
24. Which of the following statements about external users of accounting
information is correct?
A. External users of accounting information include the
employees of a company
B. External users of accounting information do not have the
capability to acquire information directly from the company
C. The needs of the external users of accounting information
are always prioritized over those of internal users
D. External users of accounting information are not concerned
with the amount of borrowings of a company.
25. All of the following are benefits of accounting information to managers,
EXCEPT
I. Managers will be able to identify the points of improvement of
a company
II. Managers can react immediately and accordingly to
problems identified in the analysis of financial statements.
III. Managers can make better decisions after studying the
financial statements
a. II only
b. III only
c. I only
d. None of the above
26. Customers look at a company’s financial statements
A. To see if it will be beneficial to build a long-term relationship
with the company
B. To help members of the academe to gather data for
educational purposes
C. To decide whether or not they will lend resources to the
company
D. To estimate the potential returns if he or she plans to
transact with the company
27. Which of the following is NOT an internal user of accounting
information?
A. Production supervisor
B. Beth, an employee who granted a loan to a company
C. Marie, a financial analyst trying to find the value of a
business
D. Chief Operating Officer
28. What is the difference between the academe and government?
A. The academe is an internal user of accounting information
while the government is an external user.
B. The academe uses accounting information for educational
purposes while the government uses it in the performance of
its regulatory function.
C. The academe uses accounting information for educational
purposes while the government uses it to gauge the riskiness of
the business.
D. The academe is an external user of accounting information
while the government is an internal user.
29. The employees are mainly concerned with
A. The company’s ability to provide other employment
opportunities
B. The management’s plan to expand the company to yield
more revenues
C. The company’s ability to pay salaries
D. The company’s ability to pay obligations when they become
due
30. What is the most likely reason why creditors will not lend to a
company?
A. The company’s level of profit is average
B. Expenses of the company are above the budgeted levels
C. Revenues generated by the company are below expected
levels.
D. The company defaulted on some of its debts last year.

Activity No. 2 True or False. For the following items, identify if the
statements are true or false. Choose the letter that represents the correct
combination of answers.

1. Statement I- Accounting is used by all types of businesses, even not-for-

profit
organizations such as charitable institutions.
Statement II- Government agencies have no use for accounting.
A. Both statements are true
B. Only statement I is true?
C. Only statement II is true
D. Both statements are false
2. Statement I- Accounting helps managers and owners of businesses in
decision-making
Statement II- All successful companies use the accounting process in
some form.
A. Both statements are true
B. Only statement I is true?
C. Only statement II is true
D. Both statements are false
3. Statement I- Managers of a company are considered internal users of
financial reports.
Statement II- The public, even if not potential investors, creditors, or
customers, are
considered external users of financial reports.
A. Both statements are true
B. Only statement I is true?
C. Only statement II is true
D. Both statements are false
4. Statement I- A stockholder of a business can be a creditor at the same
time.
Statement II- Business supply goods and services, but businesses can
also be buyers of
goods and services
A. Both statements are true
B. Only statement I is true?
C. Only statement II is true
D. Both statements are false
5. Statement I- Investors acquire goods and services from companies for a
fee.
Statement II- Customers take into consideration the future
commitments of a company.
A. Both statements are true
B. Only statement I is true?
C. Only statement II is true
D. Both statements are false
6. Statement I- Accounting information helps potential investors know with
certainty the amount
of returns they will receive on their investment
Statement II- Customers are the main factor contributing to a
company’s success. However,
customers are not the only group of persons essential to the
success of a business.
A. Both statements are true
B. Only statement I is true?
C. Only statement II is true
D. Both statements are false
7. Statement I- External users include creditors, customers, the general
public, and all investors
 Statement II- Owners or stockholders are part of management if they
take an active role in the operations of the business.
A. Both statements are true
B. Only statement I is true?
C. Only statement II is true
D. Both statements are false

Activity No. 3 Classification: Classify each of the following as either

external user (E) or internal user (I).
1. Academe
2. Creditor
3. Customer
4. Employees
5. General Public
6. Government
7. Management
8. Owners or Stockholders
9. Potential Investors
10. Bureau of Internal Revenue
11. Labor Unions
12. Factory Manager
13. Suppliers
14. Securities and Exchange Commission
15. Suppliers
Guide Questions and Performance Rating = 4 Rating = 3 Rating = 2 Rating = 1
Rubrics: Area
Defining the Student Student Student fails Student does
Problem states the adequately to define the not identify
problem defines the problem the problem.
clearly and problem. adequately.
identifies
underlying
issues.
Developing a Student Student Student Student does
Plan to develops a develops an develops a not develop a
Solve the clear and adequate marginal coherent
Problem concise plan plan and plan, and plan to solve
to solve the follows it to does not the problem
problem, conclusion. follow it to
with conclusion.
alternative
strategies,
and follows
the plan to
conclusion.
Collecting Student Student Student Student
and collects collects collects collects no
Analyzing information adequate inadequate viable
Information from information information information
multiple and to perform
sources and performs meaningful
analyzes the basic analyses.
information analyses.
in-depth.
Interpreting Student Student Student Student does
Findings provides a provides an provides an not interpret
and Solving logical adequate inadequate the
the Problem interpretatio interpretatio interpretatio findings/rea
n of the n of the n of the ch a
findings and findings and findings and conclusion
clearly solves the does not
solves the problem, but derive a
problem, fails to logical
offering provide solution to
alternative alternatives. the problem.
solutions.

Concepts Learned: Reflection

Reference: Fundamentals of Accountancy, Business, and Management 1 (Joselito G.
Florendo)
B. Fundamentals of Accountancy, Business, and Management 1 (Florenz
C. Tugas, Herminigilda E. Salendrez, Joy S. Rabo); pages 5-10

GLORIELYN L. LUSTERIO
Teacher II

JOCELYN B. PACON
Principal II