RELATIONSHIP OF MATHEMATICAL SKILLS IN IDENTIFYING

AND ANALYZING ACCOUNTING TRANSACTIONS OF

ABM STUDENTS OF LUCRECIA R. KASILAG
SENIOR HIGH SCHOOL

A Research
presented to the Faculty of Lucrecia R. Kasilag Senior High School
(SHS within Esteban Abada Elementary School)
Bansalangin St., Brgy. Veterans Village, Quezon City

in partial fulfillment of the requirements in

INQUIRIES, INVESTIGATIONS AND IMMERSION

Aleria, Mary Joy R.

Manabat, Jay-Ar D.
Norberte, Sarah Niña C.
Sulit, Shana May T.

Grade 12- ABM (A)

January 28, 2019

 Chapter 1
INTRODUCTION

Background of the Study

Over the last decade there have been some serious concerns among

accounting professional bodies concerning the status of accounting

education which has exhibited a dramatic decline in the number and

quality of students majoring in accounting. Students, universities,

accounting professional bodies and researchers see a strong relationship

between the individuals mathematical skills and the decision to major in

accounting and since more students performance in mathematics is just

average, some studies suggests that one of the factors that might impede

some students from studying accounting is their mathematical

skills[CITATION DrM15 \l 13321 ].

"Pre-math skills" (referred to in British English as pre-maths skills)

is a term used in some countries to refer to math skills learned by pre-

schoolers and kindergarten students, including learning to

count numbers (usually from 1 to 10 but occasionally including 0), learning

the proper sequencing of numbers, learning to determine

which shapes are bigger or smaller, and learning to count objects on a

screen or book. Pre-math skills are also tied into literacy skills to learn the

correct pronunciations of numbers [ CITATION GVn07 \l 13321 ].

A certain amount of math is required to be an accountant, but only

the very basics. If you are aware of the principles involved in addition,

subtraction, multiplication and division, you already have enough math

knowledge to be an accountant. There is limited algebra involved, but

nothing more. There is no need to know integrals, differentials, or any

other complicated mathematics properties and/or equations.

Accountants will spend more time concerning themselves with

information such as tax laws, financial records, and other fiscal terms.

They will memorize the basic accounting formulas they need to know, and

refer to them when they are completing their work. Almost all accounting

work is now done on computers and Excel spreadsheets, which means

even less math work for accountants.

Researchers knew that there was a significant relationship

between Mathematical Skills and identifying and analyzing accounting

transactions. This study knew that being mathematically inclined makes

the ABM students better in identifying and analyzing accounting

transactions. It was more effective using mathematical skills to perform

well in every transactions and they will pass the accounting subject just

because the ABM students are using their mathematical skills.

Conceptual Framework

Figure 1 below illustrates the conceptual framework of the research. The

paradigm presents the variables that will be considered in the research.

Mathematical Skills
Identifying and Analyzing
a. Level of Mathematical Accounting Transactions
Skills

Fig. 1The Conceptual Framework of the Study

Mathematical skills showed categorical variable, it contains level of

mathematical skills. As we conducted research, having high level of

mathematical skills had the great chances of being good in identifying and

analyzing accounting transactions.

Statement of the Problem

Specifically, the study determined the relationship of Mathematical Skills in

identifying and analyzing accounting transactions of ABM students in

Lucrecia R. Kasilag Senior High School.

Further, it seeks answers to the following questions:

1. What is the mathematical level of the students of Lucrecia R. Kasilag of

ABM?

2. Is there a significant relationship between the mathematical skills and

identifying and analyzing accounting transactions?

Null Hypothesis of the Study

There is no significant relationship between the mathematical skills

and identifying and analyzing accounting transactions.

Significance of the Study

 This study greatly benefits the following:

Students

This study helped ABM students of Lucrecia R. Kasilag Senior High

School to improve their mathematical skills. To complete accounting

transactions and to enhance their logical and critical thinking.

Lucrecia R. Kasilag Senior High School

This study helped the school to know if ABM students are more

confident to identify and analyze accounting transactions, having their

mathematical skills. To make improvement on every teacher’s way of

teaching and to promote Accountancy Business and Management to all

coming Grade 11.

Teachers in Mathematics and Accounting Subjects

This study was the basis of teachers in Mathematics and

accounting subject on how they improved their teaching and to helped

students to understand the lesson they’ve taught.

Researchers

In this study, we knew that there was a big impact of having

mathematical skills to the ABM students in identifying and analyzing

accounting transactions.

Scope and Delimitation

 The study focused on the relationship of mathematical skills in

identifying and analyzing accounting transactions of ABM students in

Lucrecia R. Kasilag Senior High School. The study was conducted among

83 ABM students which were from the Gr. 11 and Gr. 12 ABM strand and

used as a sample in conducted survey. The researchers administered the

questionnaire by asking the 83 ABM students. Each of the respondents

were given same questionnaire to answer. The researchers used and

gave the respondents a standardized test. The questions focused on how

mathematical skills helped them a lot and other incidents arising therefore.

From their answer the researchers determined the relationship of

mathematical skills in identifying and analyzing accounting transactions.

The researchers did not conduct interviews.

Definition of Terms
Accounting Transactions- is a business event having a monetary impact

on the financial statements of a business. 

Analyzing- is the act of examining a transaction to decide how it affects

the accounting equation.

Mathematical Skills- have a different level of students on how they solve

the given transactions.

Level of Mathematical Skills:

Level 1

 Adds and subtracts two digit numbers.

 Does simple calculations with money, volume, length, and weight.

Level 2

 Adds, subtracts, multiplies and divide all units of measure.

 Combine ratio, rate, and percentage.

 Draws and interprets bar graphs.

Level 3

 Understands basic geometry and algebra.

 Calculates discount, interest, profit and loss, mark up, and

commissions.

Level 4
  Understands complex algebra and geometry, including linear and

quadratic equations, logarithmic functions, and axiomatic geometry.

Level 5

 Knows calculus and statistics.

 Able to understand econometrics.

Level 6

 Works with advanced calculus, model algebra, and statistics.

CHAPTER 2
 REVIEW OF RELATED LITERATURE AND STUDIES

The purpose of having a mathematical background is to increase

an accountant's cognitive ability because accounting activities require the

use mathematics or mathematical principles. The good news is that not a

lot of math is needed to study accounting. A working knowledge of

arithmetic and a small amount of basic algebra will allow a student

to successfully complete any introductory accounting courses. The reason

for this is that although accounting information consists of numerical data,

the math tools used to record the numerical data are very simple, really

just addition and subtraction.

The reason that you need to know a little more math than this is

that doing accounting requires first analyzing transactions before

recording them .It is the initial analysis of transactions to determine correct

amounts to record that requires the basic math skills, only at very

advanced professional levels would you need more math than this.

The subject of accounting consists of three key elements:

accounting theory (underlying concepts), principles (rules) for how to apply

the concepts, and the specific procedures that implement the rules.

The type of introductory class that you take will determine which of these

elements receives the most emphasis. For example, bookkeeping classes

emphasize procedures, particularly for recording and organizing financial

data. Accounting principles classes or basic accounting classes usually

provide a more balanced content that includes all three elements. These

classes provide a less specialized, broader understanding and the

opportunity for some study of financial statements and the use of

accounting information. Introductory financial accounting concentrates

more on theory, principles and the preparation and use of financial

statements. So why does introductory accounting seem challenging?

There are two reasons, and they are not about math. First, you are simply

learning a lot of ideas, rules, and procedures that are specific to

accounting and that are new to you. Secondly, although accounting

doesn’t require much math, it does require thinking that is careful and

logical (Y.A. Babalola, 2013).

Mathematics Knowledge and Skills refers to the conceptual

understanding of numbers, their relationships, combinations, and

operations. Mathematics also includes shapes and their structure;

reasoning; measurement; classification; and patterns. Because math is

also about generalizations and abstractions, math skills during the early

years help children to connect ideas, develop logical and abstract thinking,

and to question, analyze, and understands the world around them

[ CITATION Cop09 \l 13321 ].

"In the Philippines, Filipino students are having problems when it

comes to math proficiency [ CITATION Mal09 \l 13321 ]. A number of students

are dropping mathematics aside from science courses usually before and

even after examination (E. Senajon et al; in 1286). This is an indication of

an existing perennial problem because of math anxiety that has been

overlooked by concerned offices and department. In the study conducted

in May 2014 by students in Maritime University in Molo, Iloilo City entitled

Correlation Between Academic Achievement in Math and Accounting of

BS Tourism Students determines whether there is a relationship between

the academic achievement in Math (College Algebra) and Accounting 1

(Principles of Accounting during the academic year 2013-2014. Results

revealed that the academic achievement of the first year students was

“fair” in Math 1 and “good” in Accounting 1. The study found out that there

is a very strong positive and significant relationship between Math 1 and

Accounting.

Mathematical formulas help accountants, management personnel

and lenders to compare income, expenses, profits and debts to other

companies in similar industries. The formulas usually result in ratios or

percentages that can be used to compare companies with industry

standards easily even though a large difference may exist between the

actual income and expenses of each company.

[ CITATION Sha08 \l 13321 ] stated that accounting is a very old subject

and argued that the word "accountant" comes from the Latin words "ad"

and "computer", which means "to reckon together". The word "reckon"

mrans to count up, compute or calculate. It is important to note here that

although most accounting definitions do not specifically mention the term

"mathematics", a perception of a strong relationship between accounting

and mathematics cannot be denied [ CITATION Jac06 \l 13321 ]. Nonetheless,

most accounting definitions state that accounting requires numerical and

analytical skills which are also integral elements in mathematics. In their

study, Cohen and Hanno (1993) suggested that students who chose not to

major in accounting did so based on recommendations and advice from

people important to them, but more sognificantly, they perceived it to be

too number-oriented and boring. Jackling and Calero (2006) cited that

accountants have been typically Rkein referred to as "number crunchers"

given that bookkeeping and auditing work has emphasized or been

associated with an emphasis upon numerical accuracy, routine recording

and calculation methods, together with attention to detail [ CITATION Par00 \l

13321 ]. Yunker, et al. (2009) maintained that accounting as a discipline is

concerned with accurate numerical measurement of accurately defined

operational concepts. Researchers have also asserted that the negative

views in accounting as a profession are linked to poor numerical skills

(Parker 2000). These numerical skills are seen as essential for someone

to be successful as an accountant (Parker 2000). Other studies (Mitchelle

1985) have also established a positive relationship between accounting

and mathematics, when he demonstrates that a possession of greater

numerical ability drives a better performance in accounting. Although they

were more specific than others, [ CITATION Won96 \l 13321 ]indicated that a

higher degree of proficiency in mathematics is associated with a higher

performance in financial accounting.

 Students think that a person has to be good with numbers in order

to do accounting. For instance, it was concluded in the study conducted

be [ CITATION Esk88 \l 13321 ] that university student's success in accounting

was attributed to the heavy reliance on numbers in both. As a result,

students as well as practitioners of accounting should be comfortable with

mathematics in general and numbers in particular (Yunker et al. 2009).

This was demonstrated in Pritchard et al.'s study (2004), which suggested

students who major in accounting and finance have better computational

and algebraic skills than students in other business majors.

Based on the level of mathematical skills, level 3 is the basis of

being good in identifying and analyzing accounting transactions.

Level of Mathematical Skills

Level 1

 Adds and subtracts two digit numbers.

 Does simple calculations with money, volume, length, and weight.

Level 2

 Adds, subtracts, multiplies and divide all units of measure.

 Combine ratio, rate, and percentage.

 Draws and interprets bar graphs.

Level 3

 Understands basic geometry and algebra.

 Calculates discount, interest, profit and loss, mark up, and

commissions.

Level 4

 Understands complex algebra and geometry, including linear and

quadratic equations, logarithmic functions, and axiomatic geometry.

Level 5

 Knows calculus and statistics.

 Able to understand econometrics.

Level 6

 Works with advanced calculus, model algebra, and statistics.

Chapter 3
METHODOLOGY
Research Design/ Methodology

The study used correlational design: In a correlational design it

simply measure variables (without manipulating them) and then analysed

the data to see whether the variables are related. The statistical tools used

to measure the strength and direction of the relationship (i.e. correlation

coefficients). It is much easier to established a cause and effect

relationships when manipulate one of the variables (i.e. the independent

variable). Using a correlational design the problems described in the

previous lecture for determining the nature of the cause and effect

relationship.

Applying these research designs, the study described, examined,

and determined the relationship of mathematical skills of ABM students

and their identifying and analyzing accounting transactions.

Population and Sample

The respondents of this study were the Gr. 11- ABM, Gr. 12- ABM

(A) and Grade 12- ABM (B) students of Lucrecia R. Kasilag Senior High

School who took up Basic Accounting subject. The researchers had 83

respondents from ABM strand of Lucrecia R. Kasilag Senior High School.

The researchers used Slovin’s formula in getting sample

population. We divide each group with no biases and to assure that each

group of these respondents will clearly understand and it will group by

their status.
The Instrument(s)

The researchers used a self- structure questionnaire which is a

standardized test for the 2nd variable, identifying and analyzing accounting

transactions. We also got another standardized test about level of

mathematical skills in the previous research that similar in our topic. The

aim of the questionnaire is to know the relationship of mathematical skills

in identifying and analyzing accounting transactions of ABM students.

Data Gathering Procedure

The researchers gave an information consent and questionnaires.

The purpose of the information consent process is to provide sufficient

information so that the respondents can make a decision whether to

continue participate or not. The researchers introduced their own research

topic and who will be the beneficiaries of this research study, after

introducing the research topic, the researchers gave the questionnaire

papers. After they fill up the questionnaires the researchers distributed it

into three (3) different groups, the Grade 11- ABM, Grade 12- ABM (A)

and Grade 12- ABM (B). The questionnaires will be guided the different

perspective accounting.

Plan for Data Analysis

To answer the following research questions under the Statement of the

Problem, the following statistical tools will be employed

Analysis of Variance (ANOVA)

- a statistical method used to test differences between two or
more means.

Chapter 4
 PRESENTATION AND DATA ANALYSIS

This chapter of the paper presents the data gathered from the 83

ABM students of Lucrecia R. Kasilag Senior High School who served as

respondents of this research. It also provides the analysis and

interpretation of data that has been organized according to the research

questions enumerated in the second chapter of this paper.

Demographic Profile of the Respondents

This section is composed of figures and tables relative to the

demographic information given by the respondents in the questionnaire.

This included level of mathematical skills. Although not central to this

research, these data helped contextualize the findings and the formulation

of appropriate recommendations.

Figure 2
 This shows the different percentage of Level of Mathematical Skills
of ABM students.

Level of Mathematical Skills of ABM Students

3% 9%

Level 1
Level 2
34% Level 3
Level 4

54%

Figure 2. Level of Mathematical Skills of ABM Students

None of the 83 ABM students (0%) exceeded the 1 st level of

mathematical skills. Thirty-one of the 83 ABM students (34%) reached the

2nd level of mathematical skills. Forty-nine of the 83 ABM students (54%)

reached the 3rd level of mathematical skills. And three of the 83 ABM

students (3%) reached the 4th level of mathematical skills.

This implies that in the case of these respondents, most of the 83

ABM students reached the 3rd level of mathematical skills with the score of
 10-18 points. Therefore, level of mathematical skills is related in identifying

and analyzing accounting transactions.

Table 1 ANOVA

Source of SS MS F P-value F crit

Variation df

1.25E-
Between 06 or
groups 148.1919938 2 74.096 16.18728614 0.0000 3.110766
0125
Within
groups 366.1935484 80 4.577419

Total 514.3855422 82 Ho is
rejected

Table 1.

This table shows when the level of mathematical skills increases

the average also will increases. But when the level of mathematical skills

decreases the average also decreases.

So there Is a significant relationship between level of mathematical

skills and identifying and analyzing accounting transactions.

Chapter 5

CONCLUSIONS AND RECOMMENDATIONS

 This chapter reveals the conclusion and recommendation based on

the results of the gathered data.

Conclusions

Based on the findings of the study, the following conclusions were

drawn:

1. There is a significant relationship between mathematical skills

and identifying and analyzing accounting transactions.

2. Majority of ABM students reached the 3rd level of mathematical

skills that is connected to the accounting subject.

Recommendations
Based on the conclusions, the following recommendations are

proposed:

1. For the Accountancy students will maintain or better improve

their mathematical skills because it is useful and important to our lives.

2. The future researchers may consider to conduct an additional

surveys that better represent the full community with higher response.

They may get a bigger size of sample to gather a more reliable and

accurate result.

3. The future researchers may consider doing a correlational

research design if they would like to determine the relationship of

mathematical skills to any other variable.

Appendix
Anova: Single
Factor

SUMMARY
Groups Count Sum Average Variance
16.8387 10.9397849
Level 2 31 522 1 5
19.5714 0.79166666
Level 3 49 959 3 7
Level 4 3 60 20 0

ANOVA
Source of Variation SS df MS F P-value F crit
1.25E-06 or
148.191993 16.1872861 0.0000012 3.11076
Between Groups 8 2 74.096 4 5 6
366.193548 4.57741
Within Groups 4 80 9

514.385542  Ho is
Total 2 82     rejected  
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