Basic Accounting: Service Business Study Guide

Marivic V. Manalo

Description

Basic Accounting: Service Business Study Guide is designed as a reference material in introductory accounting that can be used by readers, especially students, taking basic accounting for service business.

Presentations and discussions of various accounting concepts and frameworks are simplified to provide the reader with an initial working knowledge on the different steps of the accounting cycle for a service business.

Emphasis is given to various accounting concepts, at the same time, the development of the procedural accounting skills. Different basic accounting frameworks and forms are used to assist readers in understanding seemingly complex accounting subject matters.

The authors would like to inform the users of this study guide that this was written for readers, especially students, who would want to read a quick guide for the rubrics of basic accounting for service business. Each unit is prefaced with learning objectives to serve as guide to readers. Discussion questions and problem exercises are not included in this reference material. This study guide can be effectively use together with a workbook which is available in the university where one of the authors is currently affiliated. This reference material is not intended to replace existing accounting textbooks written by famous authors whom we have respectfully cited and given credit in this guide.

The user of this study guide will walk through the accounting process in a rational, concise and "easy to understand" manner. With the teacher's expert guidance, plus this study guide to learning the basics in accounting, the student will undoubtedly appreciate the fundamentals of accounting. Our desire is to open the eyes of students that studying basic accounting is both easy and rewarding.

Sujets

• Accounting
• Economie gestion
• Economics
• Business

Informations

• Publié par: eBookIt.com
• Date de parution: 27 octobre 2011
• Nombre de lectures: 0
• EAN13: 9781456605940
• Langue: English

Extrait

Basic Accounting: Service Business
 
Study Guide
 
 
Marivic Valenzuela-Manalo, DBA
 
Romeo Galang-Manalo, DBA
 


 
 
Copyright 2011 Marivic V. Manalo and Romeo G. Manalo,
All rights reserved.
 
 
Published in eBook format by eBookIt.com
http://www.eBookIt.com
 
 
ISBN-13: 978-1-4566-0594-0
 
 
No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems, without permission in writing from the author. The only exception is by a reviewer, who may quote short excerpts in a review.
 


About the Authors
 
Marivic Valenzuela-Manalo is an Associate Professor in the RVR - College of Business of De La Salle University in Manila, Philippines. She is a Certified Public Accountant (CPA) having completed her Bachelor of Science in Commerce Major in Accounting from the University of Santo Tomas in Manila, Philippines. She completed her Doctor of Business Administration (DBA) in 2008 from De La Salle University in Manila, where she also completed her Master of Business Administration (MBA) in 1996.
Marivic. Manalo has been teaching in De La Salle University for over eighteen (18) years. She specializes in basic accounting and cost accounting. Her research interests include: Activity-Based Costing and Management; Environmental Accounting; Basic Accounting; Business Ethics in Accounting Education, and others. She also worked as an Accountant at SGV and Company in the Philippines after graduation from college and then she assumed the position of Chief Accountant of Lourdes School in Quezon City, Philippines for two years before pursuing her passion for teaching and research.
Ms. Manalo is a member of the Philippine Institute of Certified Public Accountants (PICPA) and Association of Certified Public Accountants in Education (ACPAE).
 
Romeo G. Manalo is the Head of the Activity-Based Costing and Management (ABC&M) Office, under Finance Group, of an electric distribution utility company in the Philippines. He is a Professional Electrical Engineer (PEE) having completed his Bachelor of Science in Electrical Engineering from Pamantasan Ng Lungsod Ng Maynila (University of the City of Manila) in the Philippines. He completed his Master of Technology Management from the University of the Philippines in 2001. He completed his Doctor of Business Administration (DBA) in 2009 from De La Salle University in Manila, where he also completed his Master of Business Administration (MBA) in 1996.
Mr. Manalo is a member of the Institute of Certified Management Accountants (ICMA) of Australia.
 


Acknowledgements
 
“We know that in everything God works for the good of those who love Him, whom He has called according to His plan.” (Romans 8:28)
 
This study guide was made possible through the different contributions and efforts of so many people. We would like to thank them from the bottom of our hearts…
To our Greatest Lord and Teacher, Jesus Christ, who inspired us and gave us the strength and wisdom to write this book together with the Father and the Holy Spirit in union with all the saints and angels in heaven especially our Blessed Mother Mary, St. Joseph, St. Jude, St. Pio, and the Archangels Michael, Rafael, and Gabriel.
To our daughter Rose Guada Marie Valenzuela Manalo, who often believes in us more than we do ourselves – for her unconditional love that makes our family life happier and more peaceful.
Our special thanks goes to our parents Florencio and Guadalupe Manalo, Jose and Rosario Valenzuela, Sr. for instilling in us the love of God and our enthusiasm for studying. We are forever grateful to the other family members: Josefina, Edwin, Virgilio, Hilario, Evelina and July Manalo and Jose Jr., Evelyn, Luz, Efren, and Rene Valenzuela for their encouragement and prayers.
Our special thanks also to Dr. Tereso Tullao, Jr., Dr. Brian C. Gozun, Dr. Myrna Austria, Dr. Divina M. Edralin, Dr. Sterling Plata and Dr. Rosemarie L. Montañano, for their invaluable support.
Our special thanks also to all the faculty members of the Accountancy Department especially to Ms. Nimpha Aquino, Ms. Elsie Velasco, Ms.Helen Bernados and Ms.Ma. Gina Manaligod.
Special thanks too to all the former Basic Accounting students of Marivic Manalo who appreciated the value of the IVLE lecture notes that she prepared for them. Because of their encouraging words and inspiration, this book is finally written.
This book was made possible because of all of you.
Thank you!
That in all things, God may be glorified!
 
Foreword
Basic Accounting: Service Business Study Guide is designed as a reference material in introductory accounting that can be used by readers, especially students, taking basic accounting for service business.
Presentations and discussions of various accounting concepts and frameworks are simplified to provide the reader with an initial working knowledge on the different steps of the accounting cycle for a service business.
Emphasis is given to various accounting concepts, at the same time, the development of the procedural accounting skills. Different basic accounting frameworks and forms are used to assist readers in understanding seemingly complex accounting subject matters.
The authors would like to inform the users of this study guide that this was written for readers, especially students, who would want to read a quick guide for the rubrics of basic accounting for service business. Each unit is prefaced with learning objectives to serve as guide to readers. Discussion questions and problem exercises are not included in this reference material. This study guide can be effectively use together with a workbook which is available in the university where one of the authors is currently affiliated. This reference material is not intended to replace existing accounting textbooks written by famous authors whom we have respectfully cited and given credit in this guide.
The user of this study guide will walk through the accounting process in a rational, concise and “easy to understand” manner. With the teacher’s expert guidance, plus this study guide to learning the basics in accounting, the student will undoubtedly appreciate the fundamentals of accounting. Our desire is to open the eyes of students that studying basic accounting is both easy and rewarding. May God who is our Inspiration and Guide help us in this endeavor.
Comments from users will be highly appreciated.
 
Marivic & Romeo Manalo
 
Unit 1: Introduction to Accounting
Overview
 
Background
 
The evolution of accounting is attributed to the social and economic needs of society. As business and society become more complex, accounting develops new concepts, methods and techniques to meet the ever changing and increasing needs for financial information. Without the necessary information furnished by accounting, many complex social programs and economic development may never have been realized.
Information, in any market economy, assists decision-makers in making wise choices regarding the use of limited resources under their control. When decision-makers are able to make well-informed decisions, resources are allocated in a manner that better meets the needs and goals of companies within the given market.
Business firms all over the world would need great deal of reliable and timely information to compete in the global market and accounting will play an important role in this prevailing competitive global structure of the economy. Companies use accounting information to evaluate the business situations around the world. It is therefore necessary that future accountants, businessmen, entrepreneurs and economists must be trained properly on how to generate and interpret this financial information.
  Purpose The purpose of Unit 1 “Introduction to Accounting and Basic Accounting Principles” is to provide readers with brief descriptions of the nature and scope of accounting. This unit also includes simple explanation of the basic accounting concepts. In this unit This unit contains the following topics:
  Topics
  Nature and Scope of Accounting
  History of Accounting Thought
  Users of Financial Statements
  Forms of Business Organizations
  Basic Accounting Concepts and the Financial Reporting Standards
  The Accounting Profession
  Basic Professional Values and Business Ethics
 
 

Nature and Scope of Accounting
 
 
Overview
 
The two terms accounting and bookkeeping have been used interchangeably and without distinction. This line of thought finds support on the condition prevailing during the early times when businesses were not as complex and multifarious as they are nowadays. However, recognition of the importance of accounting in the development of modern business methods, the industrial revolution and the growth of unlimited companies that provided the impetus for the development of accounting as a profession has led to the distinction in the concepts and effects of bookkeeping as against accounting.
 

Definition
The following definitions differentiate bookkeeping from accounting:
• Bookkeeping deals primarily with the systematic method of recording and classifying financial transaction of business. It is considered to be the procedural element of accounting as arithmetic is a procedural element of mathematics. Normally, books are set up and prepared in a manner that ensures an orderly recording and classification of business transactions. However, because of the rapid economic growth and technological changes, which necessitate the mechanization of the bookkeeping job, the demand for bookkeepers has been reduced. The bookkeeping process is now basically done through the use of computers and soft wares designed for such purpose.
• A ccounting as differentiated from bookkeeping has been authoritatively defined by the American Institute of Certified Public Accountants, as
“the art of recording, classifying and su