Introduction to Accounting

Involves the rendering of audit or accounting related services to more than one (1) client on a fee basis

• Public Accountancy

• Commerce and Industry

• Education and Academe

• Government

Involves the teaching of accounting, auditing, taxation, and other technology-related subjects.

• Public Accountancy

• Education and Academe

• Commerce and Industry

• Government

Three (3) Requirements to qualify to practice the Accountancy Profession

• The person must:

  
  

  • be a holder of a Bachelors Degree in Accountancy
  • pass the difficult CPA Licensure Examination (CPALE) administered by the Board of Accountancy with an average rating of 70% (with no grade lower than 65% in any subject)
  • accredited by the BOA to practice accounting upon showing that such registrant has:

  -> acquired a minimum of 3 years of meaningful experience in any of the areas of public practice including taxation

  -> completed the required 120 Continuing Professional Development (CPD) units as mandated by RA 19012, the law strengthening all regulated professions to enhance the technical skills and competence of the CPA

• The person must:

  
  

  • be a holder of a Bachelors Degree in Accountancy
  • pass the difficult CPA Licensure Examination (CPALE) administered by the Board of Accountancy with an average rating of 75% (with no grade lower than 65% in any subject)
  • accredited by the BOA to practice accounting upon showing that such registrant has:

  -> acquired a minimum of 3 years of meaningful experience in any of the areas of public practice including management advisory

  -> completed the required 120 Certified Professional Development (CPD) units as mandated by RA 10912, the law strengthening all regulated professions to enhance the technical skills and competence of the CPA

• The person must:

  
  

  • be a holder of a Bachelors Degree in Accountancy
  • pass the difficult CPA Licensure Examination (CPALE) administered by the Board of Accountancy with an average rating of 75% (with no grade lower than 65% in any subject)
  • accredited by the BOA to practice accounting upon showing that such registrant has:

  -> acquired a minimum of 3 years of meaningful experience in any of the areas of public practice including taxation

  -> completed the required 120 Continuing Professional Development (CPD) units as mandated by RA 10912, the law strengthening all regulated professions to enhance the technical skills and competence of the CPA

Which is not a definition of Accounting?

• Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions

• Measures, processes, and communicates financial information about an economic entity in making economic decisions.

• Process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by non-users of the information.

• recording, classifying and summarizing in a significant manner, and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof

How many are the branches of Accounting?

• 6

• 7

• 8

• 5

The value of an asset should be recorded based on its’ acquisition cost or the actual price that you paid for the asset.

• Cost Principle (Historical Cost Concept)

• Cost-Benefit principle

• Accrual basis of accounting

• Full disclosure principle

Which is not a principle of an effective and efficient Accounting Information System

• The accounting system must be cost effective.Benefits of information must outweigh the cost of providing it.

• It must be useful to serve its purpose. The financial statements and reports generated should be relevant, reliable , accurate and timely.

• It must be flexible to changes such as technological advances,government rules ,regulations and de-regulations,increased competition, and changing accounting principle.

• the accounting information system should be comparable with other business enterprise on the same line of business.

This statement provides information regarding the financial performance of the business or its profitability for a certain period of time.

• Financial Statements

• Statement of Financial Performance

• Statement of Changes in Equity

• Statement of Financial Position

It contains the details or breakdown of items that cannot be presented on the face of the financial statements but makes the financial statements more meaningful to the user.

• Financial Statements

• Statement of Cash Flows

• Statement of Financial Position

• Notes to the Financial Statements

Legal form of business activity that has unlimited liability, no indefinite life, difficult to expand due to limited funds.

• Sole/Single Proprietorship

• Partnership

• Corporation

• Cooperative