Documente Academic
Documente Profesional
Documente Cultură
1.
Auditing
SGV & Co. Philippines – Auditing Firm
Tax Accounting
Research Accounting
Tax Accounting
Cost Accounting
Reeracoen Philippines
Government Accounting
2. Solve exercises in the identification of the branches of accounting described through the types of service
rendered.
1. Preparation of general-purpose financial statements Answer: Financial Accounting
2. Evaluation of the performance of a sales department Answer : Management Accounting
3. Develop standards to address a new business set up Answer: Accounting Research
4. Review tax compliance of the business Answer: Tax Accounting
5. Evaluate whether a branch of the business complies with the collection and deposit policy of the
company Answer: Auditing (Internal)
6. Review whether the financial statements are presented fairly and in compliance with accounting
standards Answer: Auditing (External)
7. Report on the spending of government funds Answer: Government Accounting
8. Report on the total cost of materials and labor used in the production Answer: Cost Accounting
9. Conducting lectures on accounting topics Answer: Accounting Education
10. Determining the cost of producing specific product. Answer: Cost Accounting
Performance Task 2
1. Solve exercises and problems on identification of users of information, types of decisions to be made, and
type of information needed by the users
Exercises: Identify what kind of stakeholders is being referred to. Choose from the following:
A. Owners F. Management
B. Creditors G. Suppliers
C. Potential Investors H. Bureau of Internal Revenue
D. Employees I. Public
E. Regulatory bodies J. Customers
2.Cite users of financial information and identify whether they are external or internal users
Exercises: The following are users of financial statements. Identify if the users mentioned below is external or
internal
3.Vdeo: Act out one internal and one external users of accounting information. Each group should be able to
differentiate users and relate these information to the decision-making process.
Performance Task 3
Corporation
2. Make a list of businesses within the locality or nationality according to their activities
Manufacturing
Service
Megaworld
Merchandising
PUREGOLD
SM City
HYBRID
CHOOKS TO GO
HAPPY CUP
Performance Task 5: Accounting Concepts and Principles/Books of Accounts/ Types of Major Accounts
2. This assumption adheres to the revenue recognition, matching and cost principles. Answers.
Matching Principle
3. The framework, rules, and guidelines of the financial accounting profession with the
purpose of standardizing the accounting concepts, principles and procedures. Answers. Conservatism
4. It requires that all business transactions and other events are recognized in the accounting records
when they occur. Answers. Cost Principle
5. Any personal transaction of its owner should not be recorded in the business accounting books and
vice versa. Answers. Business Entity Principle
6.This assumes that a company will continue to exist long enough to carry out its objectives. Answers.
Going Concern Principle
7. The life of an economic entity can be divided into artificial time periods for the purpose of providing
periodic reports on the economic activities of the entity. Answers. Time Period Principle
8. This assumption disregards any inflation or deflation in the economy in which the entity operates. Answers.
Cost Principle
9. Assets are recorded at cost, which equals the value exchanged at the time of its acquisition. Answers.
Cost Principle
10. Important information to users of financial statements should be disclosed within the statement or in the
notes to statements. Answers. Disclosure Principle
11. This accounting principle requires companies to use the accrual basis of accounting. Answer. Matching
Principle
12. Revenue is recognize when the earning process is virtually complete and an exchange transaction has
taken place. Answer. Matching Principle
13. This principle allows errors of violations of accounting valuation involving immaterial and small amounts of
recorded business transactions. Answer. Materiality
14. The basic accounting principle that leads accountants to anticipate or disclose losses, but dos not allow a
similar action for gains. Answer. Conservatism
15. Accountant are expected to apply the same accounting principles, procedures, and practices from year to
year. Answer. Going Concern Principle
2. Define, identify and classify accounts according to the five major types
Exercise: Identify if the account is an asset, liability, equity, income or expense and indicate its normal
balance.
3. Differentiate a journal and a ledger and identify types of journals and ledgers
Journal is a chronological record of the entity’s transactions. A journal entry shows all the effects of a
business transaction in terms of debits and credits. Each transaction is initially recorded in a journal rather than
directly in the ledger. A journal is called the book of original entry. The nature and volume of transactions of the
business determine the number and types of journals needed. Differentiate a journal from a ledger and identify the
types of journals and ledgers. Every page in the general journal incorporates columns for dates, serial numbers,
and debit or credit records. The general journal also provides a description with each transaction. Some
organizations keep specialized journals, such as purchase or sales journals. The specialized journals only record
specific types of transactions, whereas general journals record all other transactions.
On the other hand, grouping of the entity’s account is referred to as a ledger. A ledger is a written or
computerized record of all the transactions a business has completed. These transactions are recorded in the
ledger in different accounts. This list of accounts is most often called the chart of accounts. Large companies tend
to have many accounts in their chart of accounts while smaller companies might only have a few accounts listed.
A general ledger is generally a file or book used to keep records of all relevant accounts. The ledger is used to
track up to five relevant accounting items that include expenses, assets, revenues, liabilities and capital. Each
relevant accounting item has a two-columned, T-shaped table. The account title is located at the top of the T-
shaped table, and the table has a record of debit and credit entries. The debit entries are located on the left side
of the T-shaped table, and credit entries are located on the right. For some organizations, the general ledger
incorporates additional columns for dates, transaction descriptions and serial numbers.
Types of Journals
General Journal
The general journal is the master journal that all company transactions or journal entries are recorded in. A
typical general journal has at least five columns: one for the date, account titles, posting reference, debit, and
credit columns.
Special Journal
A special journal (also known as a specialized journal) is useful in a manual accounting or bookkeeping
system to reduce the tedious task of recording both the debit and credit general ledger account names and
amounts in a general journal. Special journals are designed as a simple way to record the most frequently
occurring transactions. There are four types of Special Journals that are frequently used: Sales journals, Cash
receipt journals, Purchase journals, and Cash Disbursement journals.
Cash Receipt Journal- used to record transactions with cash that has been received.
Cash Disbursement Journal- used to record all transactions involving cash payments.
Purchase return journal- The special journal, where purchase returns of credit purchase are recorded, is called a
purchase return journal.
Types of Ledgers
General Ledgers
A general ledger represents the formal ledger for a company's financial statements with debit and credit
account records validated by a trial balance. The ledger provides a complete record of financial transactions over
the life of the company. The ledger holds account information that is needed to prepare financial statements and
includes accounts for assets, liabilities, owners' equity, revenues and expenses.
Subsidiary Ledgers
A subsidiary ledger is a ledger designed for the storage of specific types of accounting transactions.
Once information has been recorded in a subsidiary ledger, it is periodically summarized and posted to an
account in the general ledger, which in turn is used to construct the financial statements of a company. The
account in the general ledger where this summarized information is stored is called a control account. Most
accounts in the general ledger are not control accounts; instead, individual transactions are recorded directly
into them. Subsidiary ledgers are used when there is a large amount of transaction information that would
clutter up the general ledger. This situation typically arises in companies with significant sales volume. Thus,
there is no need for a subsidiary ledger in a small company.
1. Physical ledger
This type of ledger is made up of paper. It can be physically touched. Ledgers were invented several centuries
ago and this used to be the only available form until the widespread adoption of computers, in the mid to late 20th
century.
2. Digital ledger
This type of ledger is a digital file, or collection of files, or a database. It can be manipulated only by means of
computer programs, since it does not have a physical form.