Scribd
Upload
8 views3 pages

Summary Reviewer

The document outlines the Accountancy Act of 2004 in the Philippines. It establishes the requirements to obtain a CPA license, including passing exams in 6 subjects. CPAs can work in 4 sectors - public, private, government, or academe. It also defines the key branches of accounting, types of business organizations, accounting activities and concepts like the accounting equation. The accounting cycle is described as a repetitive 9-step process beginning with analyzing transactions and ending with financial statements. Journal entries are a core part of double-entry bookkeeping where every debit has a corresponding credit.

Uploaded by

John Aries Mirano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
8 views3 pages

Summary Reviewer

The document outlines the Accountancy Act of 2004 in the Philippines. It establishes the requirements to obtain a CPA license, including passing exams in 6 subjects. CPAs can work in 4 sectors - public, private, government, or academe. It also defines the key branches of accounting, types of business organizations, accounting activities and concepts like the accounting equation. The accounting cycle is described as a repetitive 9-step process beginning with analyzing transactions and ending with financial statements. Journal entries are a core part of double-entry bookkeeping where every debit has a corresponding credit.

Uploaded by

John Aries Mirano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

ACCOUNTANCY ACT – RA 9298 (Signed by Gloria Macapagal Arroyo – May 13, 2004)

6 SUBJECTS
1. FAR (Financial Accounting and Reporting)
2. AFAR (Advanced Financial Accounting and Reporting)
3. MAS (Management Advisory Services)
4. RFBT (Regulatory Framework for Business Transaction) Needs to pass to get CPA license.
5. Taxation
6. Auditing
4 SECTORS
1. Public
2. Private/Commerce
3. Government
4. Academe (Licensed)
Branches of Accounting
 Auditing
 Bookkeeping
 Cost (Accounting, Management, etc.)
 Financial Accounting
 Financial Management
 Management Accounting
 Taxation
 Government Accounting
Business Organizations
 Sole Proprietorship (Owner’s Equity)
- 1 owner
 Partnership (Partner’s Equity)
- 2 or more owners
- Created by agreement/consent
 Corporation (Shareholder’s Equity)
- 5 or more
- Created by law
 Common Law – private (Revised Corporation Code)
 Special Law – public (Specific Company)
A = L + E – OE, PE, SE
Types
 Service
 Merchandising
 Manufacturing
Activities
 Operating
 Financing
 Investing
ACCOUNTING
- Is the LANGUAGE of business.
- Is an Art of RECORDING, CLASSIFYING, SUMMARIZING in a significant manner in terms
of money, transaction or events of which are in part, at least, of Financial Character and
INTERPRETING the RESULTS thereof.

Journalizing Posting to Unadjusted


For decision- Ledger Trial
making purposes Financial Balance
Statements
Decision-makers/users
 Primary Users  Transaction
- Internal - Involves 3rd party
- Directly affected  Customer
 Owner  Events
 Creditors - Inside the business
 Investors
 Other Users
- External Type of Financial Statement
- Indirectly affected  Statement of Financial Position
 Customer  Statement of Comprehensive Income
 Public  Statement of Cash Flow
 Government  Statement of Changes in Owner’s Equity
 Inside the business  Notes Financial Statement
 Inside the business
Accounting Concept
 Periodicity Concept
- Periods (Calendar Year – Jan - Dec or Fiscal Year – starts at any month basta 12 months)
 Entity Concept
- The business is separate from its owner(s) of the business,
 Going Concern Assumption
- The business will continue its existence.
Double-Entry System
- In every DEBIT there must be a corresponding CREDIT.
Accounting Cycle
1. Identify and Analyze Transaction (source document)
2. Journalizing (double-entry system – Dr = Cr) Repetitive Process
3. Posting to Ledger
4. Unadjusted Trial Balance
5. Adjusting Entries (accrual & deferral)
6. Worksheet Once (Dec. 31)
7. Closing Entries
8. Financial Statements
9. Reversing Entries (optional)
How can we say?
1. Identifying & Analyzing Financial Transaction & Events
2. Journalizing  Give & Take Relationship
3. Posting to Ledger - What to give?
- What to receive?
 It affects all accounting elements
 Measurable (in terms of money)
Journal
Date Account Title & Posting Reference Debit Credit
Explanation
101 (Account
number of Account
Title)

Account Titles

 Assets  Liabilities

- Cash - Accounts Payable


- Accounts Receivable - Notes Payable
- Supply

Accounting Equation

A = L+E
Normal Balance
Dr. = Cr.

You might also like