Course Code: ACC 102

Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

Lesson title: Overview of Accounting and Accounting Materials:

Concepts and Principles
Module #1
Lesson Objectives:

1. Recognize the use and importance of accounting

business decisions. References:
2. Familiarize different form of business
organization and operations. Fundamentals of Financial
3. Properly identify the common branches of Accounting and Reporting
accounting. by Win Ballada

Productivity Tip:
Create a schedule and manage your time wisely.
 Keep a semester and a weekly calendar. On the first day of class, read the
course syllabus and enter all due dates in your calendar, along with reminders
for the due dates.
 Commit to studying or participating in your online class and activities.
 Learn the difference between asynchronous and synchronous online courses, and
develop strategies for success in each format.
 Prioritize your work. Make a smart decision about how to best spend your time.

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)

Good day, class! Welcome to ACC 102: Fundamentals of Financial Accounting &
Reporting. I will be your class instructor for this subject. I am
________________________________ and you may call me __________________. I’m very
delighted to be part of your adventure! For today, let me discuss the overall outline of this
subject, including the topics we will discuss for the next periods, grading system,
schedules and policy rules and standards. Let me reminded you as well for some
classroom etiquettes we must observe:

ONLINE MEETINGS AND PHYSICAL CLASSROOM ETIQUETTES:

 Be punctual both for online and classroom meetings.
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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

 Wear proper attire.

 Choose a clean and non-distracting location.
 Mute yourself if you experience unavoidable background noise.
 Be ready to take notes and give your full, focused attention.
 Participate fully to all activities.
 Should you have noted concerns about the topic, raise and ask
immediately to your instructor.
 Be more careful with your words when talking with your instructor
and classmates.

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

2) Activity 1: What I Know Chart, part 1 (3 mins)

What do you know about Accounting and its significant use in our everyday life? Try
answering the questions below by writing your ideas under the What I Know column. You
may use key words or phrases that you think are related to the questions. Answer the
What I learned section after reading the Concept notes

What I Know Questions: What I Learned

Where do we use accounting

information? Provide at least
two (2).

How do we differentiate
Accounting from
Bookkeeping?

What is partnership?

B. MAIN LESSON
1) Activity 2: Pre-Printed Content Notes (13 mins)

Accounting plays an important role in assisting all forms of economic activity in the various sectors.
Accounting serves as the language of business which is helpful in business decisions. Without
accounting, Business owner or managers would not know which products were successful, and which
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Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

decisions were the right ones. With the help of an accounting, they would get an idea of how much to pay
in taxes, capital required for further projects, whether to lease or buy an asset, and so on. Accounting also
helps investors to understand how efficiently their capital or economic resources are being used.

Accounting is a service activity. Its function is to provide quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic decisions.

Types of information provided by accounting: Economic Entities refer to

 Quantitative – in numbers; quantities artificial persons” responsible for
 Qualitative – in words or descriptive form “economic resources (limited supply, can
 Financial – in money values command a price); includes both profit
oriented and not-for profit entities.

Business Entities pertains to entities that

are profit-oriented.

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Name: _____________________________________ Class number: _________________

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Functions or Phases of Accounting

1. Recording – recording business transactions
2. Classifying – sorting or grouping of similar accounts
3. Summarizing – preparing reports (financial statements)
4. Interpreting – analytical function

Users of Accounting Information

➢ Internal users – make decisions directly affecting the internal operations of the enterprise
Examples: Business owners, Corporate Board of Directors, Management, Employees.

➢ External users – make decisions concerning their relationship to the enterprise.

Examples: Investors, government agencies, creditors and suppliers, customers and the public.

FORMS OF BUSINESS ORGANIZATIONS

Sole Proprietorship – consists of one individual doing business called the proprietor. The manager is
usually the owner also. All profits belong to the proprietor.

Partnership – consists of two or more persons who bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing the profits among themselves. The co-owners are
called partners.

Corporation – is an artificial being created by operation of law, having the rights of succession and the
powers, attributes and properties expressly authorized by law or incident to its existence. The owners in a
corporation are called stockholders, evidenced by their holdings of shares of stocks.

Business entities are usually engaged in business operations that increase the value of the enterprise
and earn a profit. These activities are performed daily to generate sufficient revenues. See below table for
the list of business operations type.

TYPES OF BUSINESS OPERATIONS

TYPE ACTIVITY STRUCTURE EXAMPLES

Service Selling people’s time Hiring skilled staff and Accounting, Legal
selling their time

Trader / Buying and selling Buying raw materials Wholesaler

Merchandising product /manufactured goods Retailer
and sell the same
without modification
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Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

TYPES OF BUSINESS OPERATIONS

TYPE ACTIVITY STRUCTURE EXAMPLES

Manufacturing Designing products, Taking raw materials Vehicle

combining and using equipment assembly Food
components & and staff to convert and drink
producing finished them into finished goods Pharmaceuticals
goods

Raw materials Growing or extracting Buying blocks of land Farming,

production raw materials and using them to Mining, Oil
provide raw materials

Infrastructure Selling the utilization Buying the operating Transport

of infrastructure assets (typically large (airport operator,
assets); selling airlines, trains,
occupancy often in ferries,
combination with buses) Hotels
services

Financial Receiving deposits, Accepting deposits and Banks

lending and investing paying interest; extend Lending companies
money loans to
borrowers and charge
fees and a higher rate of
interest

Insurance Pooling premiums of Collecting cash from Insurance

many to meet claims many customers; investing companies
of a few the money to pay the
losses experienced by a
few customers.

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Name: _____________________________________ Class number: _________________

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BRANCHES OF
ACCOUNTING DESCRIPTION

Auditing Independent examination that ensures the fairness and reliability of the reports
that the management submits to users outside the entity.

Bookkeeping A mechanical task that involves collecting financial data, recording business
transactions and preparing financial statements.

Government Concerned with the identification of the sources and uses of resources consistent
Accounting with the provisions of city, municipal, provincial, and national laws.

Financial Focused on the recording of business transactions and the periodic preparation of
Accounting financial reports. Information is primarily intended for external use.

Management Incorporates cost accounting data and adapts them for specific decisions which
Accounting management may be called upon to make. Information is intended for internal use.

Taxation/Tax Includes the preparation of tax returns and the consideration of the tax
Accounting consequences of proposed transactions or alternative courses of action.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
Getting-To-Know-You Activity

I know that since this is your first day, you are not familiar yet with your classmates. We will be
having various activities for this subject so to help you know them well and assist you with our
activities; I want you to find an ‘accounting buddy’ from the class that will act as your
teammate for the rest of the semester. But I want you to get to know one another before you
continue. So, as our first activity, each one will have a turn to introduce him/ herself. Include in
your introduction what you have learned from the main topic in a short but meaningful
statement. Once done, share with the class a screenshot photo of your team while doing the
discussion.

3) Activity 4: What I Know Chart, part 2 (2 mins)

I am really curious about what you have discussed with your accounting buddy. Please provide in the
below table at least three (3) learning’s that you have shared with each other.

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

4) Activity 5: Check for Understanding (5 mins)

Direction: Each item relates to our topic discussion. Write in the space provided the term that
corresponds to your answer.

_________1. This refers to the business that is owned and controlled by one person.
_________2. Certificate that certifies the ownership of stocks in a corporation.
_________3. Branch of accounting concerned with the identification of the sources consistent
with the provisions of city, municipal, provincial or national laws.
_________4. This can be broadly defined as the branch of accounting that prepares general
purpose financial statements to be used by parties both internal and external to the entity.
_________5. Software development is an example of ________________________ business.
_________6. This form of business is considered as the most common form of business
organization in the Philippines.

A. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
You have accomplished this module, well done! Shade the number of this module that you
have finished.

b) Think about your learning by filling up your “My Learning Tracker” below. Write your
learning targets, your scores, learning experience for this session and deliberately plan for
our next learning session.

Date Learning Target/Topic Scores Action Plan

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 Course Code: ACC 102
Module #1

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

What module# did you

What were your What contributed to the quality of your
What’s the do? What were the
scores in the performance today? What will you do next session
date today? learning targets? What
activities? to maintain your performance or improve it?
activities did you do?

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