What I learned in AC 501 Today is...

ACCOUNTING is a science and an art...


science - involves observing certain
steps to be followed to reach a particular answer, also includes the
classification of knowledge

art - involves personal judgment, skills, creativity, analyzing, communicating, technical know-hows

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

The underlined terms above are called the FOUR PHASES of Accounting.

1. Recording phase, a.k.a. Bookkeeping
- bookkeeper records transactions and events to serve as evidence and basis for the other 3 phases of accounting (needed to make reports/financial statement)

2 types of TRANSACTIONS
a. INTERNAL - transactions that occurs within the entity (a.k.a. financial character); e.g. pay roll (employee-employer)
b. EXTERNAL - transactions that occurs between the entity and an outside; e.g. customer buys a peach mango pie from Jollibee (consumer-producer or seller-buyer, the buyer being the outsider while the Jollibee being the financial character )

Evidence of Transaction = CASH REGISTER TAPE
e.g. sales invoice, cash invoice, charge invoice, boarding pass, passenger's ticket, deposit/withdrawal slip

All examples of evidence of transaction are all called Source/Business Documents/Papers

[Keep your own records, because accountants keep other peoples' records systematically & chronologically.]
(ACCOUNTING = a service-based profession that provides reliable & relevant financial information in making decisions.)

JOURNALIZING - recording transactions in the journal or Book of accounts

BOOK of Accounts ~ You need to know...
WHAT to record, HOW to record, WHERE to record, & WHY to record.

2. Classifying Phase - grouping of similar items

involves the T chart, wherein the horizontal line is the title and the left side is the DEBIT (Dr) and the right is CREDIT (Cr)

3. Summarizing Phase
~needed for making reports or financial statements

4. Interpreting Phase
~hardest part
~has two types of users

(w/in entity)Internal & (outside entity)External users, the definition is much like the transaction types stated above.

Accountants need to learn how to work under pressure because they need to present reports or information on time (before the entity can make a decision that will affect the business.)

ACRONYMS DISCUSSED:

AICPA (American Institute of Certified Public Accountants)

PICPA (Philippine Institute of Certified Public Accountants)

GAAP (Generally Accepted Accounting Principles)

IAS (International Accounting Standards)

PAS (Philippine Accounting Standards)

ITR (Income Tax Returns)

SEC (Securities & Exchange Commission)

BIR (Bureau of Internal Revenue)

DTI (Department of Trade and Industry)



we don't have the book yet and this is the 1st discussion day

HEH, Ms. Anzano's not my teacher anymore, I think Ms. Alicia Villar is now my BA teacher and I wasn't around to find out myself. hehe, moving on, I have to memorize the vision-mission the mission is just 3 sentences.

3 reeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeally long sentences.

Wow, you must really love this class. You put so much effort writing this

jua[n] wrote:Wow, you must really love this class. You put so much effort writing this

No, not really. Fanfiction is my true love!

Hmm.. Fan fiction, you say?

jua[n] wrote:Hmm.. Fan fiction, you say?

Ain't it awesome? It's like spilling your guts out to a person you like, but you make it into a story It's fun! You should try it some time

I think I already have XD

501..nalimot nako. hahaha

amazing