PhD 803

ACCOUNTIN
G
Reporter:
Mary Anne P. Solinap
ACCOUNTING
• It is the process of measuring, processing, and sharing financial
and other information about businesses and corporations.
(Merriam-Webster.com)
• Accounting is the process of recording financial transactions
pertaining to a business. The accounting process includes
summarizing, analyzing, and reporting these transactions to
oversight agencies, regulators, and tax collection entities. The
financial statements used in accounting are a concise summary
of financial transactions over an accounting period,
summarizing a company's operations, financial position, and
cash flows. (Investopedia.com)
How Accounting Works?
•Accounting is one of the key functions of
almost any business.
•It may be handled by a bookkeeper or an
accountant at a small firm, or by sizable
finance departments with dozens of
employees at larger companies.
•The reports generated by various
streams of accounting, such as cost
accounting and managerial accounting,
are invaluable in helping management
make informed business decisions. 
How Accounting Works?
•The financial statements that summarize a
large company's operations, financial
position, and cash flows over a particular
period are concise and 
consolidated reports based on thousands
of individual financial transactions.
•As a result, all professional accounting
designations are the culmination of years
of study and rigorous examinations
combined with a minimum number of
years of practical accounting experience.
 History of Accounting

This Photo by Unknown Author is licensed under CC BY-NC This Photo by Unknown Author is licensed under CC BY-NC

Accounting
This Photo by Unknown Author is licensed under CC BY-SA

(1880)
Institute of C
hartered Acc as a
ountants in E
ngland and
Wales
Profession
This Photo by Unknown Author is licensed under CC BY-SA
19 Century th
 Importance of
Accounting
1. Keeps a record of business
transactions
2. Facilitates decision-making for
management
3. Communicates results
4. Meets legal requirements

This Photo by Unknown Author is licensed under CC BY

The different types of accounting:
• Financial accounting
• Governmental accounting
• Public accounting
• Cost accounting
• Forensic accounting
• Management accounting
• Tax accounting
• Auditing
The different types of accounting:
FINANCIAL ACCOUNTING
• The primary purpose of financial accounting
is to track, record, and ultimately report on
financial transactions by generating financial
statements. This must be done using the
standardized guidelines found in Generally
Accepted Accounting Principles (GAAP)
rules. These rules are set by the Financial
Accounting Standards Board (FASB) and are
designed to promote consistency in the
reporting process, so Company A will use the
same reporting methodology as Company B.
The different types of accounting:
PUBLIC ACCOUNTING
Are firms that provide accounting
services to a variety of clients,
including service businesses,
manufacturers, retailers, nonprofit
organizations, governmental
organizations, and individuals. Public
accounting focuses on auditing, tax
preparation, tax advisory, and
consulting activity, including 
financial statement preparation and
analysis
This Photo by Unknown Author is licensed under CC BY-SA
The different types of accounting:
COST ACCOUNTING
• It is a specialty field that looks closely at the actual cost of doing
business.
• Used internally, cost accounting is typically used in a
manufacturing environment, though it can be used for service
businesses as well.
• Cost accounting looks at both fixed and variable costs that a
business incurs such as materials, labor, overhead, maintenance,
and production costs, ultimately providing management with
important information such as break-even points.
The different types of accounting:
Cost accounting
Most businesses will use a standard costing system, which assigns an average cost to product
production, though other costing methods can be used.
The chart below demonstrates how to use cost accounting to calculate manufacturing costs:
Calculating manufacturing costs can help management establish a profit point.
Material cost Php 50,000
Labor cost Php 45,000
Depreciation cost Php 35,000
Salaries Php 60,000
Total Manufacturing Cost Php 190, 000
Cost accounting is considered a form of management accounting, focusing on the future, and
is primarily used as an aid in the decision-making process rather than as a way of reporting
past performance.
The different types of accounting:
FORENSIC
ACCOUNTING
• Forensic accounting is a unique
combination of accounting, auditing, and This Photo by Unknown Author is licensed under CC BY-SA-NC

investigative techniques.
• Forensic accounting is used to investigate
the financial activities of both individuals
and businesses. It is frequently used by
banks, police departments, attorneys, and
businesses, examining financial
transactions and later providing those
findings in a completed report.
The different types of accounting:
MANAGEMENT ACCOUNTI
NG
• Management accounting is a form of
accounting used in businesses
worldwide. Management accounting is
designed to provide management with
the information necessary to make
high-level decisions for the business.
• Management accounting information is
shared exclusively with others in an
organization. This Photo by Unknown Author is licensed under CC BY-SA
The different types of accounting:
Management accounting
Three common types of management accounting are
used for:
1. Strategic management
2. Performance management
3. Risk management
The different types of accounting:
TAX ACCOUNTING
•Tax accountants work with these entities to
ensure accuracy when calculating and
reporting tax liabilities for their clients.
•It is used to accurately calculate tax due,
lower tax liability, complete tax returns
accurately, and file tax forms in a timely
manner.
•In addition to preparing tax returns, tax
accounting can also be used for tax
planning, which helps both individuals and
businesses develop a tax strategy in order to
minimize taxes due.
This Photo by Unknown Author is licensed under CC BY-NC
The different types of accounting
AUDITING involves the
tracking and reporting of all
financial activity for a business,
auditing is designed to provide an
independent analysis of that
financial activity to ensure that a
business is recording transactions
following the acceptable rules
and standards that apply.
Auditing Accounting
The different types of accounting:
Government accounting:
 Source:

Rules
on
Government
Accounting
(COA)
LIABILITY
• https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF201
2/GLOSSARY.pdf
 2021 Computation of DepEd Schools MOOE
BONCODIN FORMULA
Computation of School’s MOOE BUDGET PROPOSAL (BP) FY 2019

School’s MOOE = Fixed amount + (Allowable amount x Number of

Classrooms) + (Allowable amount x Number of Teachers) + (Allowable
amount x Number of Learners) + (Allowable amount x Number of
Graduating Learners)

• There are two components in the formula, the fixed and variable costs.
EMILIA BONCODIN
Former Secretary of DBM
The fixed amount for every school would be:
• Elementary School – P50,000
• Junior High School (IUs & Non IUs) – P96,000
• Senior High School *standalone only – P100,000

The variable amount for every school would be:

Example: (hypothetical data)
• Teacher -300
• classrooms – 150
• learners -9,000
• graduating – 1500

MOOE (very large school)

96,000 + 2,880,00 + 1,080,000 + 4,320,000 + 450,000 = 9,276,000 or
9,280,000
REFERENCES:
• https://www.wallstreetmojo.com/steps-in-accounting-process/
• https://www.coa.gov.ph/abc-help/rules-on-government-accounting/
• https://www.deped.gov.ph/wp-content/uploads/2019/05/DO_s2019_
008rev.pdf
• https://en.wikipedia.org/wiki/Emilia_Boncodin#Government_career
• https://www.officialgazette.gov.ph/2011/03/17/dbm-remembers-sec-
emy-boncodin/
• https://corporatefinanceinstitute.com/resources/accounting/accounti
ng/
• Images from MS Online Pictures