ACCOUNTING RECORDING OR JOURNALIZING-

systematically maintaining record all

IMPORTANT POINTS:
transaction after identified and measured
a. quantitative info
CLASSIFYING- sorting or grouping of similar
b. financial in nature
into respected classes
c. useful in making decision
LEDGER- group of accounts w/c
systematically categorized
COMPONENTS:
SUMMARIZING-preparation of FS (key
a. identifying- analytical
product of info system)
-recognition or nonrecognition
of business activities as accountable events
OBJECTIVE:
-has an effect in asset,
provide quantitative financial info about a
liabilities, and equity
business that is useful to statement users
ECONOMIC ACTIVITIES
particularly
1. external- one and other entity eg.
Owners and creditors in making economic
Purchase, borrow
decisions
2. internal- w/in entity only eg.
Production (transformed into products) and
ACCOUNTANTS PRIMARY TASK:
casualty loss (act of God)
supply financial info so that the statement
b. measuring- technical
users could make informed judgement and
-assigning of peso amount
better decision
-common financial denominator
-Phil. Peso unit of measurement
RA No. 9298 PHILIPPINE ACCOUNTANCY
- bases: historical (most common use),
ACT OF 2004
current, realizable, and present
BOARD OF ACCOUNTANCY- body authorized
c. communicating- formal
to s
- preparing and distributing reports to
promulgate rule and regulation
potential users
-prepare and grade Phil CPA exam
-reason for universal language of
business