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ACCOUNTING

& BUSINESS
WHAT IS MSMEs?
MSMEs is the acronym for micro, Small
and Medium enterprises.

This accounts for 99% of the total business


enterprise in the country and provided
employment for 61% of the countrys labor
force.
WHY DO WE STUDY ACCOUNTING ?
simply, Because our accounting program will
help you develop strong technical and
professional accounting skills, including
communication, problem-solving and
analytical skills
What knowledge is required in the
study of Accounting ?
First, it is analytical ability that counts most;
your ability to analyze the transactions and
situational problem requirements.

Second, it is your stock knowledge in


arithmetic and not mathematics that are
needed. It requires of, ADDITON,
SUBTRACTION, DIVISION AND
MULTIPLICATION.
Third, there is psychological factor behind.
Many students are shy from accounting subj.
because of the impression that accounting is a
very difficult subject.
Lastly, spend more time in your studies.

because accounting must have the


understanding, speed and accuracy.
ACCOUNTING IS NOT FOR BUSINESS
ONLY
Whenever we hear the word accounting, we
often associate it with figures and then relate
it to business.

its actually, nearly everyone practices in one


form or another every day.
DECISION-MAKERS IN BUSINESS
The primary motive a person engaged in
business is profit.

To create job opportunities to others in terms of


providing for employment might only be
incidental depending upon the nature of the
business and the amount of capital he
invested.
Illustrated below are three (3) possible
results of the business operations:
Sale or Income Earned
At profit

P 100,000 - income
- 80,000 - expenses/ liabilities
P 20,000 the profit is 20,000.
Less Cost and Expenses
At breakeven:

P 100,000 - income
- 100,000 - expenses/ liabilities
-(0)-
PROFIT (LOSS)
At Loss

P 100,000 - income
120,000 - expenses/ liabilities
( 20,000)
At this point, the accountant who is a
knowledgeable is expert professional in the
field of accounting into the world of business.

Business as an organization has some goals to


attain (profit).
Importance in keeping Business
records:
In accounting, we should have diary which will
record all the activities for the day and even a
year.
The records that should be kept by the business
for that purpose are called books of
accounts
What has been recorded in books of accounts
are data that are financial in character which
are processed and transformed in to a report
called financial statements.
The Role as ACCOUNTANT in
business.
The role of an accountants is to
prepare financial report for the
business. He would also assumes the
responsibility of devising systems &
methods to safeguard the properties
owned by the business.
CRITERIA FOR A PRINCIPLE TO
BECOME GENERALLY ACCEPTABLE
PRINCIPLE OF RELEVANCE that the resulting is
meaningful and useful to those who need to know
something about the status of a certain organization.
PRINCIPLE OF OBJECTIVITY that the resulting info.
Is not influence by the personal bias or judgment of
those who furnish it.
PRINCIPLE OF FEASIBILTY that it can be implemented
w/o undue complexity or cost. These criteria are
conflicting with one another and to resolve, the one
which may be least objective and least feasible is
favored.