Philippine Christian University 1

College of Business Administration & Accountancy

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

1.1 INTRODUCTION

In the modern day society, competition in the global market tends to become more

tedious. As a result, it has been shown that the regulation of accounting information

becomes more extensive as required by various corporations along with social, economic,

and political factors as instruments for progress and development. Accountants are

considered financial specialists at the heart of all areas of accounting business including

consulting, corporate finance, and forensic accounting. Many jobs are available to them

in all areas of the globe.

In order to become a professional accountant, a bachelor’s degree is generally the

minimum educational requirement needed to obtain an entry-level position in the field.

No one is born an accountant and become a Certified Public Accountant (CPA) in an

instant. It is not an overnight experience but rather a journey to work hard for every

single day until one reaches the stepping-stone of success.

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Taking up Bachelor of Science in Accountancy (BSA) could be really so

challenging for it is considered one of the hardest course in Business Administration.

This is due to some consideration that to become a full-pledged Accountancy student,

 Philippine Christian University
College of Business Administration & Accountancy

they must have to undergo a tough training ground in preparation for the CPA Board

Examination. Many hardships and struggles will be encountered by the students along the

way and they must have a combination of knowledge, skills and right attitude to surpass

and succeed the course.

But not all students are able and given the opportunity to pursue this course due to

some circumstances, may it be they are eliminated or it has come to their minds to finally

choose the course appropriate to them because some students were only influenced by

their parents or relatives’ decision to get the said course, while others were just pressured

because they wanted to follow their parents’ footsteps.

As the saying goes, “Many are called but few are chosen”, indeed, it is really hard

to stay in the world of accountancy.

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1.2 BACKGOUND OF THE STUDY

Accounting is a vital part of any individual, business or organization’s economic

foundation. It plays a major role in defining financial condition and performance, in

terms of operations, profitability, and sustainability. Based on American Institute of

Certified Public Accountants (AICPA), accounting is defined as the art of identifying,

recording, classifying, and summarizing in a significant manner and in terms of money,

transactions and events which are, in part at least, of financial character, and interpreting
 Philippine Christian University
College of Business Administration & Accountancy

the results thereof. It can also be defined as identification, measurement, and

communication of financial information about economic entities to invested persons.

(Kieso, Weygandt, Warfield, 2011).

The Bachelor of Science in Accountancy (BSA) program comprises of subjects in

accounting (financial, public, managerial), audit, administration, business laws and

taxation. Its primary focus is not limited to business subjects, but to other fields as well,

such as banking and finance, government, social services, education, and more. The

program also teaches students to integrate information technology concepts into business

systems, in order to create a more systematic and organized way of storing business

related data. Students will be taught computerized accounting systems, and basic

understanding of computer programming and auditing systems. The program also instills

in students the importance of computational and communication skills both in written and

oral English.

The said program is taught in a variety of teaching methods such as case analysis,

individual and group reports, simulations, classroom discussions and guest lecturers. It

also includes extensive exposures to business immersions (an internship where there is a

probability that the company will hire/absorb you after graduation) and an on-the-job

training that will provide you with the understanding of practical accountancy. 
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College of Business Administration & Accountancy 4

Also, the BS in Accountancy program prepares students for entry into variety of

fields in accountancy, including corporate accounting, accounting information systems,

and governmental accounting, as well as entry into graduate programs such as law. It also

equips students with basic and advanced accounting concepts, principles, and procedures.

In addition to doing accounting functions for business enterprises, the students are

prepared for public accounting after passing the CPA board examination.

Bachelor of Science in Accountancy is one of the most difficult and challenging

course. It is not unusual to see many students, who have entered the program, eventually

shifting to other courses since they cannot withstand the rigors and demands of the

course. What makes it more difficult are combination of mathematical operation, logical

thinking and processes, follows sorting, retrieving, and presenting the information in

reports, the tough review period of six (6) months, and the rigorous board exam that

follows.
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The primary goal of the Department of Accountancy in Philippine Christian

University (PCU) is to produce globally dynamic, competent, and ethical professional

accountants capable of making a positive contribution over their lifetimes to the

profession and society in which they work. In the face of increasing rapid changes in the

accounting profession that they will meet later as professional accountants, it is essential
 Philippine Christian University
College of Business Administration & Accountancy

that students must develop and maintain an attitude of learning in the field of

accountancy.

In order for the Department of Accountancy to achieve such mission, they

imposed a retention policy as it is a necessary qualification to pursue the BS Accountancy

Program.  The department decided to be stricter in screening the students. This is more of

a ‘streamlining’ on who deserves to get into Accountancy. After completion of the

program and passing the CPA licensure examination, the graduates can pursue a career in

accountancy and related professions among the four major fields of accountancy: public

practice, commerce and industry, government and education.

Effective S.Y. 2013-2014, freshmen, transferees or second course accountancy

enrollees must obtain a final grade of 2.25 equivalent to 84% - 86% or higher in all

Accountancy, Business Law and Taxation subjects in order to pursue the Accountancy

program. Aside from the minimum grade required to be maintained, incoming third-year

(3rd year) accountancy students, shifters, transferees, and second course takers have to

pass the Qualifying Examination. Non-passers of the said examination cannot continue

anymore with the Accountancy Program and are advised to shift to another program of

his/her choice.
 Philippine Christian University 6
College of Business Administration & Accountancy

At present, PCU’s College of Business Administration and Accountancy (CBAA)

offers various degree programs for prospective students, like Accountancy, Marketing,

Management, Finance, Economics, and Microfinance and Accounting. The population of

the college department for the academic year 2016-2017 had decreased from 1,365 to 620

students.

Every year, the number of students entering the BS in Accountancy program in

PCU ranges from 150-200 forming around 3-4 block sections, but at the end of every

semester, the BSA population is declining up to 50% and is continuously declining for

subsequent years as the number of students shifting to other courses increases.

It is in this light that the researchers would like to conduct this study of

identifying the factors why BSA students shift to other courses.

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College of Business Administration & Accountancy

TABLE 1.1

College of Business Administration & Accountancy

Enrolment Summary (Second Semester 2016-2017)

Courses 1st Year 2nd Year 3rd Year 4th Year 5th Year Subtotal Total
Old New Old New Old New Old New Old New Old New
FINANCE 3 3 1 22 13 19 4 57 61
BBA- MGT 4 15 61 42 68 4 186 190
BBA-
3 19 2 37 19 26 5 101 106
MKTG

BBA- MMA 1 19 27 39 86 86

BSA 4 18 52 1 25 21 28 5 144 149

BSBA- MM 3 3 1 3 7 1 16 17

BSOA 1 1 3 3 1 2 7 9
BSREM 1 1 2 2

FIGURE 1.1
 Philippine Christian University
College of Business Administration & Accountancy

College of Business
PERCENTAGE OF ENROLMENT SUMMARY
Administration &

Accountancy
3% 1% 0%
24% 10%
Percentage of
31%
Enrolment
14% 17%
Summary (Second

Semester 2016-

2017)
BBA- MF BBA- MGT BBA- MKTG BBA- MMA
BSA BSBA- MM BSOA BSREM
 Philippine Christian University
College of Business Administration & Accountancy

FIGURE 1.2

Bachelor of Science in Accountancy

Curriculum
 Philippine Christian University
College of Business Administration & Accountancy

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FIGURE 1.3
 Philippine Christian University
College of Business Administration & Accountancy

Bachelor of Science in Business Administration

major in

Microfinance & Accounting

Curriculum
 Philippine Christian University 11
College of Business Administration & Accountancy

1.3 STATEMENT OF THE PROBLEM

This research study aims to identify the factors which lead the BSA students in

PCU to shift to other courses. This study seeks to answer the following:

1. Profile of the respondents in terms of:

 Name

 Gender

 Year level shifted

 Course shifted

2. Reason/s for choosing BS in Accountancy.

3. Main reason/s that made BS Accountancy students shift to other courses.

4. Grade range/s in accounting subjects students they have already taken

before shifting to other courses.

5. Accounting subject/s students found the most difficult before shifting to

other courses.

6. Factor/s that affect students to shift to other courses.

7. Students’ manner of coping up when the shifting happened.

8. Satisfaction with the course shifted.

 Philippine Christian University 12
College of Business Administration & Accountancy

1.4 OBJECTIVES OF THE STUDY

The main purpose of this research is to determine the factors which affect the BSA

students in PCU to shift to other courses. This study aims to attain the following:

1. To produce a research-based data on why the number of BSA students

shifting to other courses keep on increasing.

2. To find out the common reason why BSA students shift to another course

and how this affect their studies.

3. To draw up a list of problems of BSA students with their accounting

subjects.

4. To understand why BSA students decide to shift to another course.

 Philippine Christian University 13
College of Business Administration & Accountancy

1.5 CONCEPTUAL FRAMEWORK

BSA students who shifted to other courses

Time management
INPUT

Questionnaire
Research-based application
Gathering and collecting data
Recording data and information
PROCESS Interpreting and analyzing data

Factors why accountancy students' shift to other courses

OUTPUT

1.6 CONCEPTUAL PARADIGM

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College of Business Administration & Accountancy

1.7 SIGNIFICANCE OF THE STUDY

Bachelor of Science in Accountancy is one of the most difficult and challenging

course in all universities. Most students are having misconceptions of the said course

because when they hear it, they think it is pure math, when it fact it just needs one

comprehension and analytical skills. Although it requires only basic mathematical

operations, what makes it more difficult is the use of analytical and logical thinking since

it is more on understanding accounting problems, solving tricky business problems,

familiarizing accounting theories and alike.

Accountancy is quite a tough course. Many students end up shifting to other

courses because they cannot endure the demands of accountancy. Plus the CPA Licensure

Examination is a crucial one.

Furthermore, this study aims to know the factors which lead the BSA students to

shift to other courses. The researchers believe that this study will benefit the following:
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Philippine Christian University, Manila. This study can be helpful for the

development and improvement of the school’s curriculum. With this, they can identify

the factors which affect the BSA students to shift to other courses eventually resulting to
 Philippine Christian University
College of Business Administration & Accountancy

the increase of shifters’ population every semester. Also, they can construct solutions for

higher standard of knowledge.

BSA Students. This study is significant especially to the students of Bachelor of

Science in Accountancy; they will have information about the factors or reasons why

BSA students shift to other courses. In this case, they can avoid factors which can be

negative to their academic performances that may lead them to shift course. And with

this, number of students shifting will be minimized.

Faculty. This research contains information relevant to the faculty so they would

understand the root of shifting of BSA students. This may help them understand the

significance on how to motivate and guide students for a better future.

Parents. They are the most affected in the case of shifting because they have

already dreamed about their child’s success, paid tuition fees and formulated high

expectations. This study can help them understand why BSA students shift courses and

can guide, support, and help their child cope up or avoid shifting.
 Philippine Christian University 16
College of Business Administration & Accountancy

1.8 SCOPE AND LIMITATION OF THE STUDY

The research study is limited to previously enrolled BSA students but shifted to

other courses and how the process affected them. The sample population chosen covered

only the students belonging to school year 2016-2017 in all year levels in PCU who have

already shifted from Bachelor of Science and Accountancy program during the said

period.

1.9 DEFINITION OF TERMS

The following major keywords used in this study were defined in the purpose of

better understanding and clarity in the context of the research.

Accountant. Is a professional practitioner of accounting or accountancy who

performs accounting functions such as audits or financial statement analysis.

Accounting. The systematic and comprehensive recording of financial

transactions pertaining to a person or a business.

Accounting transactions. A business event having a monetary impact on the

financial statements of a business.

Bachelor of Science in Accountancy. A program composed of subjects in

accounting (financial, public, managerial), audit, administration, business laws and

taxation.
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College of Business Administration & Accountancy

Certified Public Accountant (CPA). An individual who holds a valid certificate

issued by the Board of Accountancy, whether he/she be in public practice, industry,

commerce, the public sector or education. (Ballada, et al., 2013).

Factors. A constituent or element that brings about certain effects or results, or

indicates a specific multiple, number, or quantity.

Financial. Pertaining to monetary receipts and expenditures.

Internship. A job training for white collar and professional careers.

Profitability. The degree to which a business or activity yields profit of financial

gain.

Retention policy. Set of guidelines in which a certain school follows a minimum

grade for students in order for them to advance to the next level.

Shifting. To transfer from one course to another.

Simulation. The imitation of the operation of a real-world process or system over

time.

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CHAPTER 2
 Philippine Christian University
College of Business Administration & Accountancy

REVIEW OF RELATED LITERATURE

This chapter presents the related literature after the thorough and in-depth search done by

the researchers.

2.1 INTRODUCTION

Accounting is the systematic and comprehensive recording of financial

transactions pertaining to a business. Accounting also refers to the process of

summarizing, analyzing, and reporting these transactions. The financial statements that

summarize a large company’s operations, financial position, and cash flows over a

particular period are a concise summary of hundreds and thousands of financial

transactions it may have entered into over this period. Accounting is one of the key

functions for almost any business; it may be handled by a bookkeeper and accountant at

small firms 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 management accounting, are invaluable in helping management make

informed decisions.

Accountancy is a career which offers a graduate environment, variety, people

contact, a professional qualification, high salaries, and opportunities to work

internationally. Many accountants use their qualification to move into general

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College of Business Administration & Accountancy

management or to set up their own business. Accountants work in all areas of business,

plus the public and voluntary sector.

Work in private practice is centered on audit: visiting clients as part an audit team

and reviewing their business operations and financial records to establish the validity of

the company’s accounts. Auditing gives you a chance to visit 10 or 20 companies a year,

examine their finances and strategies and ask questions about the way they work. You see

what makes some profitable, some fail, some good places to work and others bad: after 3

years training you have a unique insight into what makes a business successful.

Other work includes tax consultancy, business advice and insolvency work. This

gives a broad insight into many different business and areas of business, which is why

many accountants choose to qualify in private practice before moving into industry and

other areas. If you train in private practice you will qualify with one of the chartered

accountancy institutes or with the Association of Chartered Certified Accountants

(ACCA).

Accountants in industry and commerce use their financial expertise to inform

management decision-making, to advise other departments within their organization and

 Philippine Christian University
College of Business Administration & Accountancy

to maximize its profitability and effectiveness. In the public sector they perform a similar

role but with the emphasis on ensuring value for money.

2.2 LOCAL LITERATURE

Accountancy is a profession. A graduate of BS in Accountancy who passed the

board exam is called a CPA (Certified Public Accountant), or in short an Accountant. An

accountant's job includes the performance of financial functions related to the collection,

accuracy, recording, analysis and presentation of a business, organization or company's

financial operations. The accountant usually has a variety of administrative roles within a

company's operation. The employment opportunities for the accountancy graduates may

vary depending on whether or not they pass the Certified Public Accountant (CPA) Board

Examination. However, most countries require their own licensure examination to work

as a licensed accountant, so opportunities abroad are mostly for jobs which do not require

licensure. Another option would be to take and pass the licensure exam at the country

which you intend to work in. Thus, in the Philippines, entry level jobs for both board

passers and non-board passers are more or less the same. Compensation is above the

minimum wage, it can range from 12,000php to 18,000php per month. For those who

have more experience and passed the CPA board, salary can reach as high as 60,000php.

In abroad, CPA’s are some of the highest paid employees in developed countries. In US

dollars, a CPA’s salary can range from $2,500 to $10,000+ a month, depending on the

country, experience, and position.

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What are the admission requirements for Bachelor of Science in Accountancy?

According to CHED (Commission on Higher Education, the official governing

both public and private higher education institutions), the standards of admission to the

BSA program should be sufficiently rigorous and demanding, that is why it has set a

standard for Colleges and Universities who offer the BSA program to conduct a selective

admission policy. 

Requirements at each school are different, but the following are the common

requirements:

 Must be a high school graduate.

 Must have a college entrance examination of above average or depending on

the specified rating set by the school.

 Aside from the college entrance examination, you must pass the separate

aptitude test specific for BS in Accountancy.

 Must pass the interview conducted by the college admission officer.

 Some schools require a high school QPA of 85% and above with no grade

less than 80% in all subjects.

 There are schools who require students to have an 85% or higher average

rating in the National Secondary Assessment Test (NSAT).As set by CHED,

all schools must conduct an English Proficiency examination to all BS in

Accountancy applicants.
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College of Business Administration & Accountancy

 Admission for Philippine Educational Placement Test (PEPT) passers mainly

depends on the school's discretion since some colleges and universities only

offer selected courses.

What skills are required to succeed in this course?

In order to succeed in this course, s combination of knowledge, skills, and the

right attitude are needed:

 A student who is to take BS in Accountancy must be intellectual enough to

carry out problems that need abstract logical thinking.

 Reasoning skill is important because this will help in the discovery of

underlying principles between two or more objects and use it to solve a

problem.

 Analytical skill is a must because it is imperative to be able to review,

interpret, evaluate financial data and systems and operational data/controls in

order to form conclusions.

 Problem solving - the ability to discern the true nature of a situation and

evaluate applicable principles and techniques – is also important, as well as

the ability to link data, knowledge and insight together from different sources

and disciplines to make informed decisions.

 Interpersonal and effective communication skills are essential as well

because you will be working in groups, so being a team player helps.

 A good grasp of the English language is also required.

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College of Business Administration & Accountancy

 Commitment, patience, and hardwork complete the necessary attitude that

will help you succeed in this course.

How difficult is the Bachelor of Science in Accountancy course?

BSA is quite a difficult course. Many students end up shifting to other

courses because they cannot withstand the demands of accountancy. Although it requires

only basic mathematical operations, what makes it difficult is the use of analytical and

logical thinking. Rigid training and a difficult board exam complete the list of obstacles

for this course.

How long does it take to complete this course?

Normally, the BSA program takes 5 years to complete. Some schools who

apply the trimesteral system do the program in 4 years. The duration is spent in

interactive classroom discussions, business immersions and on the job trainings.

Depending on the school, the estimated total number of hours for on the job trainings

ranges from 150 to 240 hours. Review classes in preparation for the CPA licensure

examination, can require an additional 5-12 months, depending if you pass on the first try

or not.

The Board Exam

An accountancy graduate needs to take the Certified Public Accountant

Licensure Examination before he/she can practice as an accountant. The examination is

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College of Business Administration & Accountancy

conducted by the Board of Accountancy under the supervision of the Professional

Regulation Commission (PRC). It is scheduled twice a year in the month's of May and

October. 

All board subjects are given 2 units with a minimum exam hours of 3 hours

each subject. Since there are 7 board exam subjects all in all, there is a total of 14 units

and 21 hours. A candidate for the examination should obtain a general weighted average

of 75% with no rating belong 60% in all 7 subjects. 

Career opportunities for BSA graduates

Jobs for licensed CPAs (board exam passers)

Entry Level jobs

 Accounting Associate – support senior level accountants and auditors with

administrative, bookkeeping, clerical, accounts payable and accounts

receivable duties.

 Audit/Tax staff – perform internal audits and they are also hired by the IRS

and other governmental agencies to ensure that the company is abiding by

financial laws and regulations.

 Financial Accounting and Reporting Staff – manage or give advice on

finances for clients or companies. Accounting staffs handle duties such as

making bills are paid on time and taxes are deducted, and suggest methods of

cutting costs.
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College of Business Administration & Accountancy

 State Accounting Examiner/ State Accountant/ LGU accountant –

government accountants help the federal government as well as state and

local agency record and prepare financial reports in accordance with

government accounting principles and professional standards.

 Budget analyst – aids federal authorities in evaluating budget data,

estimating revenue and expense levels, and adjusting social programs.

 Junior Accounting Instructor – a CPA who teaches at a university or

college.

Mid-Level Positions

 Audit Manager – supervise the activities of an audit department. This

department ensures that financial reports comply with policies, laws and

regulations.

 Comptroller – comptroller supervises income and expenditures, keeping

track of all ingoing and outgoing money

 Senior Auditor – responsible for analyzing and communicating financial

information; reviews the operations of a company making sure that they

comply with corporate and government policies.

 Senior Fraud Examiner – an expert in fraud investigation as well as in its

prevention and deterrence.

 Financial Services Manager – supervises financial services sales

representatives or associates and ensures they meet business performance

 Philippine Christian University
College of Business Administration & Accountancy

requirements (sales quotas). A financial services manager may work for an

insurance company, an investment bank or a mutual fund.

Advanced Positions

 Senior Consultant – evaluates a company's internal processes and

procedures, detects performance (productivity) levels and provides

recommendations for improvement.

 Financial Advisor – gain and retain clients with excess money to invest.

 Chief Financial Officer – responsible for overseeing the financial activities

of an entire company.

 Vice President For Finance – highest level finance expert within a business.

Jobs for Non Board Passers

 Bank Teller – handles basic money deposits, withdrawals and check-

cashing transactions.

 Accounting Clerk – keeping financial records and making computations

throughout the course of a typical workday.

 Assistant Product Manager – works under the leadership of a product

manager, assisting in the development of corporate brand strategies in the

short term and long term.

 Philippine Christian University
College of Business Administration & Accountancy

 Data Entry Operator/Clerk – responsible for supplying accurate

documentation that may be part of a billing, patient, inventory or customer

service capacity.

 Financial Advisor

Jobs not related to the BSA program

 Call center agent – answers phone calls and inquiries of clients and

provides customer support, usually to people from other countries

 Freelancer working online – doing online jobs for clients abroad, such as

data entry, article writing, SEO, customer support, administrative support

etc., which mainly depends on your skills

 Administrative Staff – personnel responsible for the organization and

management of office duties and tasks; positions that include office

secretary, personal assistant and office clerk.

 Philippine Christian University
College of Business Administration & Accountancy

CHAPTER 3

RESEARCH METHODOLOGY

This chapter
 Philippine Christian University
College of Business Administration & Accountancy