ACCOUNTING-WPS Office
ACCOUNTING-WPS Office
ACCOUNTING-WPS Office
PROFIT
MANAGEMENT
~With accounting, Management is provided with information essential to the effective conduct and
evaluation of its business activities.~
2. Partnership - owned by two or more persons who partnered to contribute money, property, or
services.
1. Service
- binabayaran.
2. Merchandising
3. Manufacturing
4. Agribusiness
- combination of personnel, records, and procedures that a business uses to meet its need.
ACCOUNTING MANUAL
- guidebook
BUSINESS RECORD
- mandatory in government.
- requires all corps, companies, partnerships or persons to pay internal revenue taxes, it is also done in
compliance with Municipal of city ordinances.
BOOKKEEPER
- recording process
ACCOUNTANT
AUDITORS
- assumes that business has separate and distinct personality from that of the owner.
2. Going-Concern Assumption.
3. Periodicity Concept.
- assumes that life of a business entity is meaningfully divided into equal period.
•Accounting period
3-months(quarterly basis)
6-months(semi-annual basis)
- assumes that recording of income and expense follow the accrual basis of accounting.
4. Matching Principle - goods and services are used that produce revenue.
•"Owner's Equity", "Partnership Equity" or "Stockholder's Equity" - sole proprietorship, partnership, and
corporation.
Financial Statements
1. Balance Sheet - shows financial position as of particular date. - shows assets and liabilities thru which
solvency could be measured.
2. Income Statement - shows performance of enterprise. -present result of operation which would
either be a net income, net loss, or break-even.
3. Statement of Changes in Equity - summarizes the changes in equity.
4. Statement of Cash Flow - presents cash inflows(receipts) and cash outflows(payments) which are
being classified into: a) Operating Activities b) Investing Activities c) Financing Activities
3. Lenders/Creditors - to determine whether their loans and interest thereon will be collected when
due.
8. Management - Planning, Controlling, Directing, Staffing, Organizing, decision-making. - to set goals for
their organization, to evaluate results of past economic decision and to control activities of the entity.