Speaker A
Hello guys, welcome to my very first accounting tutorial. So for today, we will be discussing the introduction to accounting part 1. I divided the basic concepts and principles into three parts. Also, I will be posting standalone
Introduction to accounting basics covering definitions, principles, and importance for business decision-making.
Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.
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Key Takeaways
- Accounting is fundamentally the language of business, communicating vital financial information.
- It is a service activity focused on providing quantitative financial data for economic decisions.
- Accounting benefits a wide range of stakeholders beyond business owners, such as investors and creditors.
- The primary goal of accounting is to support better decision-making through accurate financial reporting.
- Accounting principles are grounded in standardized definitions provided by authoritative bodies like ASC and AICPA.
What the video covers
- Introduction to accounting as the language of business and its role in communicating financial information.
- Explanation of accounting as a service activity providing quantitative financial data for economic decision-making.
- Discussion of the importance of accounting for various stakeholders including business owners, investors, and creditors.
- Overview of the historical development of accounting linked to trade and commerce.
- Presentation of widely accepted definitions of accounting from ASC, AICPA, and AAA.
- Emphasis on accounting involving recording, classifying, summarizing, and interpreting financial transactions.
- Clarification that accounting information must be quantitative, financial in nature, and useful for decision-making.
- Examples of everyday accounting use in personal budgeting and expense tracking.
- Highlighting the essence of accounting as decision usefulness for stakeholders.
- Interactive quiz questions to reinforce understanding of key accounting concepts.
Chapters
- 00:00Introduction and Overview of Accounting
- 03:07History and Everyday Use of Accounting
- 05:46Accounting as a Service Activity
- 09:07Definition of Accounting by AICPA
- 12:07Importance of Recording and Classifying Transactions
- 15:39Understanding Financial Statements and Normal Balances
- 18:47Recitations and Concept Reinforcement
Full Transcript — Download SRT & Markdown
Speaker A
videos which will be shorter than this one for those who just want to study per topic. Please note that this channel is for educational purposes only and not as a substitute for a proper educational program. By the way, if you like this
Speaker A
video, make sure to subscribe to this channel and, of course, hit the notification bell for more updates from this vlog. So now, let's begin.
Speaker A
So our topic for today includes the definition of accounting, nature of accounting, phases of accounting, objective of accounting, and also history of accounting. So if you have questions like what is accounting, why do I need to study accounting, what is the objective of accounting, and is it
Speaker A
really important for businesses? Of course, sasagutin natin yan today in this vlog. So let's start with the definition of accounting. So ano ba ibig sabihin ng accounting?
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So accounting is understood as the language of business. So, ano ibig sabihin yan, sir? So, through accounting, malalaman natin kung magkano ba ang kinikita ng business, magkano ba yung assets natin, or yung mga pagmamayari natin, or even kung may
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utang ba tayo or liability, or yung normal na concern ng isang business owner, saan ba napupunta ang pera natin or pera ng business? So, these vital information are communicated to stakeholders or to those parties na interested sa financial reports
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ng business natin. Okay, so ang operative word dito when we say language of business is the word communicated. When we say interested parties or stakeholders, hindi ito limited lang sa business owners. Pwedeng ang tinutukay natin dito ay investors. They are concerned sa financial report kasi they have
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to decide whether or not. Concern sa financial report kasi they have to decide whether or not mag-i-invest ba sila sa business natin or pwedeng creditors, diba? Whether or not papautangin ba tayo kung kailangan natin mag-expand ng business. Also,
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accounting is the backbone of the business financial world. After all, diba? Accounting was created in response to the development of trade and commerce during the medieval times.
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Of course, may transactions before. So, kailangan natin i-account. So, kaya na-develop ang accounting. Just to add lang, without us being fully aware, we actually use accounting in our daily lives. For example, you as a student, di ba, ikaw nag-aaral
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ka, before pandemic, binibigyan ka ng allowance ng parents mo. Siguro ngayon, di mo na alam yung salitang allowance kasi online classes na lang. But before, di ba, may allowance ka na, binabudget mo. You account for your money. Or pwede naman
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if you are working. Diba? You also account for your expenses. When you buy something, you make sure na you have enough cash to pay for your purchases or your expenditures. So we actually use accounting every day. We're not just aware of it.
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So kung tinatanong ka ng prof mo or teacher mo at nakalimutan mo ang definition ng accounting, so pwede ka na bumalik dito. Isagot mo na yung language of business. Sagot mo na yung language of business, okay? There are also widely used definitions
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of accounting as provided in our standards. So let's discuss the most common one. So first, we have the definition of accounting as provided by the Accounting Standards Council or ASC. We also have the definition provided by the American
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Institute of Certified Public Accountants or AICPA, and also American Accounting Association or AAA. So let's start with the definition of accounting as defined by the Accounting Standards Council or ASC.
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So I hope you memorize this definition or at least try to familiarize with the operative word used in this definition. Okay, so let's proceed.
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The Accounting Standards Council or ASC provides this definition. Accounting is a service activity. The accounting function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decision. So from this definition,
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dapat talam mo kung ano yung mga operative word. So again, ito, dito. Service, quantitative, financial, and also economic decision. So, himahimahin natin yung definition na ito para hindi mo na kailangan i-memorize. You just have to familiarize with the keywords or operative words, okay?
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Sabi dun, accounting is a service activity. So, what do we mean by service activity?
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So, define natin, service is the occupation or function of serving. When we say service, diba, it is something you do. We should note that accounting is an activity rather than ang outcome. So, ibig sabihin, ito yung something na ginagawa natin rather than the outcome itself. So, later on, we
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will discuss how we provide financial information to stakeholders. So, from this definition, there are three important points that we should focus on. So before that, let's answer this question. Which of the following is incorrect?
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First, letter A, accounting is about qualitative information. Letter B, the information is likely to be financial in nature. Letter C, the information should be useful in decision making. And letter D, none of the above. So try to answer this. So the correct answer is letter A.
Speaker A
Accounting is about qualitative information. So yun po ang nagpamali. Ano yung word na nagpamali dyan? Yung qualitative. Because from the definition of the ASC, diba? Sabi, accounting is about quantitative information. Meaning, it is something na kina-quantify natin or mini-measure natin
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but we are highly focused on qualitative information. So, again, sabi ko nga, there are three important points. So, what are those? First, accounting is about quantitative information. So, when we say quantitative information, it is expressed in numbers or quantities or pwedeng units,
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something na we can quantify or we can measure. Something na we can quantify. Also, para masabi natin, pasok siya sa definition ng accounting, dapat the information is likely to be financial in nature. So, madali lang naman yan, pag sinabi mong financial in nature, meaning, we can express it in terms of money. Okay, and lastly, the information should be useful in making economic decision.
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So the overall objective of accounting is to provide... So, the overall object... quantitative financial information about the business that is useful to statement users, particularly yung mga owners and creditors to help them in their decision making.
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So an accountant's primary task is to supply financial what? Inform judgment and better decision. Diba? So, tutulungan natin sila to decide kung ano ba yung mas better for their company o kung kailangan ba nila mag-invest sa business natin o kailangan ba nilang magpautang
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sa business natin. So, we have these stakeholders para mag-decide. Okay? Because the essence of accounting is decision usefulness. Okay, so we're done with the definition of the ASC. So now let's move on to the definition of AICPA. Okay? So, we're done with the definition of the ASC. So what is
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accounting as defined by the American Institute of Certified Public Accountants? So pwede mong i-pause tong video to recite the definition of accounting by AICPA. So let's proceed.
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So accounting as defined by American Institute of Certified Public Accountants or AICPA, accounting is the art of 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
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results thereof. So, from this definition, nakahighlight na ng red yung mga operative words. Ayan, naka-highlight na ng red yung mga operative words. So, para mas madali natin siya maintindihan. Kung kanina, pag sinabi natin accounting, anong operative words natin?
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Sabi dun, service. Sabi din dun, quantitative information. Sabi din...
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Sabi dun, service. Sabi din dun, quantitative information. Sabi din dun, financial. Sabi din dun, for decision making. So, sa AICPA, ito naman yung ating mga operative words. Sabi, it is an art. Also, art of what? Recording, classifying, and summarizing or RCS. Recording, classifying, and summarizing. Ano
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sabi? In terms of what? Money, transactions, and events. Also, financial character then and interpreting the results thereof.
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So, recitation tayo ulit. So, accounting is the art of recording, summarizing, and classifying 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
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thereof as defined by American Institute of Certified Public Accountant, is it absolutely true or false? So the correct answer is false. Okay, ano yung nagpamali dyan sa statement na yan?
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If you memorize the definition as provided by AICPA, madali mong masasagutan. Pero if not, familiarize ka sa operative words. So, ang sabi doon, art of RCS, diba yung palatandaan natin? Which is recording, classifying, and summarizing. So, for this question, false siya kasi
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pinagbaliktad yung face. Diba? Hindi mo pwedeng isummarize kung hindi mo pa nakaklassify. So RCS nga, recording, classifying, and summarizing. So, RCS nga, recording, classifying. So para lang yan isa kang pasyente sa hospital, di ba? Or magpapacheg ka. Kasi feeling mo may sakit ka. So when you go
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to the hospital, di ba unang gagawin sa 'yo, i -check up ka, which is recording. Then once na ma -check up ka na ng doktor, ika -classify na kung ano bang test yung babagay sa 'yo. Pwede urine test, blood test,
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x -ray, or whatever is applicable. So, once nakapag -test ka na, isa -summarize na yung findings ng result mo. Whether or not may sakit ka ba or hindi. So, ganun din sa accounting. So, dapat record mo na, classify, bago mo i
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-summarize. Okay? so from the definition again, sabi, accounting is an art. So when we say art, diba? Accounting is considered an art because it requires the use of skills and creative judgment. So of course, as an accountant, diba? Kailangan mo ng skills
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or discipline to be able to perform yung accounting function. It is considered as a science but not an exact science since the rules and principles are constantly changing. Of course, because of the changes in our environment, diba, nag -e -evolve din ang accounting natin. the changes in our environment. Kung before,
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diba, walang lahat manual. Ngayon, pwede nang computerize. So, yung rules, nababago din. So, we have to adjust as well. So, let's move on with the phases of accounting. So, we have RCS nga, which is recording, classifying, and summarizing. classifying, and summarizing. Okay? natin kung ano ba meron
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dito. Himahin pa natin yung RCS. So, recitation muna tayo. So, the book of final entry is so called journal. Is it absolutely true or false? The correct answer is false. Okay? So, from the definition later, makikita natin bakit
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ba false? Kasi ang book of final entry, ang tawag dyan ay ledger. book of final entry Ang journal naman ay book of original entry. Okay, so pag recording, yung recording, it is the process in which transactions are recorded in the books of original entries or
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yung tinatawag nating journal. So, kung baga kung ang process ay recording, saan mo siya ginagawa? So, journal. Sa journal. transactions or entries of one nature are grouped together under one head of account. So, saan naman natin siya ginagawa? Sa ledger. Or otherwise known as book of final
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entry. Okay? And lastly, may summarizing. Ito yung presenting the classified data in the form that is dapat, ano, At ano, understandable and useful to users of accounting information. understandable and useful to users of account. So dito papasok yung trial balance hanggang financial statements. Okay.
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So recitation tayo ulit. So sabi, once the business transactions and events having financial character and expressed in terms of money have been recorded, classified, and summarized, the stakeholders can now make an informed judgment and decision.
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So is it absolutely true or false? So sabi dyan, if yung business transactions and events daw, na -record mo na, na -classify mo na, na -summarize mo na Pwede ka na daw ba na magbigay ng informed judgment and decision? The answer is false. Bakit?
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Kasi business transactions and events having financial character and express in terms of money, are useless unless na ma -interpret natin sa gagamit. Gaya ng example natin kanina sa hospital, once na -check up ka na, sinabihan ka na kung anong test yung gagawin, tapos nakasummarize na yung result mo, yung mga
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yun hindi mo magagamit or useless unless ma -interpret Unless, diba, ma -interpret kung ano ba yung findings talaga nung naging test mo. kung ano ba yung findings talaga na Ganun din, same goes with accounting. So, dapat, once na
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-record mo na siya, na -classify mo na, na -summarize mo na siya, dapat i -interpret mo din para alam nung stakeholders kung ano ba yung dapat nilang gawin. So, recitation tayo ulit. So, ito na yung huling definition. So, what is accounting? as defined by the American Accounting
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Association or AAA? So, I hope you memorized this one. You can pause this video if you want to recite. But let's proceed. So, accounting as defined by American Accounting Association or AAA. Sabi dun, accounting is the process of
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identifying measures. One thing is the process of identifying, measuring, and communicating economic information to permit informed judgment and decision by users of the information. Sir, ang haba na naman ang definition. So again, para mas madali mo siyang maintindihan, hanapin mo
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yung operative words. So from this definition, sabi una process. Tapos, identifying, measuring, and communicating. Kung kanina, RCS. Ngayon, IMC. So, identifying, measuring, and communicating. And lastly, informed judgment and decision. So, parang yung kaninang definition lang. Kailangan pa rin ng informed
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judgment and decision. Kung kanina RCS, ngayon... So, ano ba yung process of accounting? So, we have identifying, measuring, and communicating.
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So, before we... define these processes, so magsagot muna tayo ng recitation. So all business activities are accountable events.
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Is it absolutely true or false? The correct answer is false. So malalaman natin yan sa definition ng identifying. So let's proceed with the definition of identity. So, let's proceed with the definition of identifying. So, ano ba ibig sabihin ng identifying sa definition ng AAA?
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So, when we say identifying, this is the accounting process that is concerned with the recognition or non -recognition of business activities as accountable events. Okay? When we say accountable events, meaning yan yung kinoconsider natin sa accounting. Meaning, yan yung kinukonsider natin sa
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accounting. But, we have to take note that not all business activities are accountable. Okay? Or accountable events. For example, kapag ba si business owner nag -hire ng employees, sa tingin nyo makakaapekto sa accounting? The answer is no. Kasi, di ba, hindi siya accountable events. So,
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dapat alam mo kung ano ibig sabihin ng accountable events. Okay? kung ano ibig sabihin ng accountable events. Okay? So, another example, kapag ba namatay yung isang empleyado, do you think na makaka -apekto sa accounting?
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The answer again is no. Kasi, di ba, hindi siya accountable events. They cannot be quantified or expressed in terms of unit of measure.
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Okay? So, ano ba ang criteria para masabi mong accountable events. So, recitation tayo. So, sagutan natin to. The following are the criteria for accountable event.
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Except, it is a result of past activity. It must affect a financial element of accounting. Its cost can be measured arguably or none of the above. What do you think is the answer, guys?
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So, the correct answer is letter C. Its cost can be measured arguably. Ang tanong kasi except, so ano daw ba yung criteria for accountable event? First, it must affect a financial element of accounting. Meaning, dapat may increase or decrease sa asset,
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liability, or equity. So, define lang natin ng layman's term, itong tatlong... ng layman's term itong tatlong accounts na to para at least may idea kayo. So when we say asset, these are the things you own in the business. Okay? So example nyan, cash, accounts receivable,
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inventory, supplies, building, land, equipment, machinery. So yan, asset yung mga yun. So when we say liability, these are your obligations or obligations sa business, okay? sa business. Or yung kautangan mo, or debt, or yung obligations mo. So, example nyan, accounts payable, notes
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payable, so, short -term borrowings, and the likes. Lastly, when we say equity, ito yung capital mo sa business, okay?
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So, residual definition lang siya. Or yan yung tinatawag natin net assets or net worth. Or yan yung tinatawag nating net assets or net worth. So, also, sabi, it is a result of a past activity. When we say result of past activity, meaning
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may nangyari before. Kaya mo siya nire -recognize ngayon. So, for example, if mangungolekta ka sa customers, so bakit ka mangungolekta sa customers? Kasi may binenta ka. So, yun lang yung ibig sabihin ng past activity. Ibig sabihin may nangyari before, kaya mo siya i -recognize ngayon. Ibig sabihin, may nangyari before. Lastly, its
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cost can be measured reliably. So, sabi nga natin, di ba from definition, yung mga definition ng accounting dapat measurable or quantifiable siya. So, dapat kaya mo siyang i -measure reliably. From the recitation kasi ang nakalagay, measured arguably. Okay, so ang binigay na kriteriya dapat reliably.
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So, only economic activities are emphasized and recognized in accounting. So, kapag sa identifying, dapat alam mo yung mga economic activities or yung mga activities. Internal ba yan or external? So, madali namang i -define yan, di ba? When we say external transactions or exchange transactions,
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these are economic events involving one entity and another entity. So meaning yung business mo and outside your business. When we say internal transactions, these are economic events involving the entity itself. So expound pa natin itong mga transactions na ito, itong
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external and internal. na to, itong external and internal. Okay? So, when we say external transactions, example nyan, diba? Purchase of goods from a supplier.
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Bumili ka ng goods sa supplier. So, of course, involve outside the entity or outside ng business mo. Kasi galing sa labas, papasok ng business mo. Ano pa? Borrowing of money from a bank. Involve yung bank dyan. So, involve other entity.
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So, pasok siya sa external. Ano pa? Kapag nagbenta ka, diba? Sale of goods to a customer. Kasi involve yung customer dyan. So, external din. Ano pa mga example? Pag nagbayad ka ng pasahod or payment of salaries to employees,
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of course, involve yung employees dyan na outside the entity. And lastly, diba? For example, last example, Payment of taxes to the government payment of taxes to the external din siya kasi involved yung government dito When we say naman internal transactions Diba nga yan yung economic entities that
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take place entirely within the entity itself So, example nyan, production and casualty loss So, production, ibig sabihin yung paggawa sa loob ng business mo When we say internal transaction hindi ibig sabihin nun nasa loob ka ng business so, pag sinabi natin internal transactions, dapat ang question
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dyan, sino ba involved? yung business ko lang ba? ok, pagka external business ko lang ba and outside the entity? so, yun yung question so, again, production and casualty loss production, yun yung paggawa ng mga yung mga, lalo na sa manufacturing, paggawa ng kotse. lalo na sa
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manufacturing, paggawa So, may nangyayari within the entity. Casualty loss. So, very common itong kayo, di ba? Yung pagsabog ng bulkan. Of course, nagkaroon ng loss yung mga businesses. Kasi yung iba dun, inabo. Yung iba dun, natabo na na ng flood. So, considered yun as casualty loss or
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internal transactions. Okay? So, recitation tayo again. an external transaction? Borrowing of money from a bank, sale of goods to a customer, production of inventories in the warehouse, payment of taxes to the government, or none of the above.
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The correct answer is production. Diba yan ang nga diniscuss natin kanina lang? production ng inventories ay internal transaction. So let's proceed.
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So once na na -identify na, doon naman na tayo sa measuring. When we say measuring, ito yung accounting process na nag -a -assign tayo ng peso amounts to the accountable economic transactions and events. If accounting information is to be useful, it must be expressed in terms of common
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financial denominator. So sa Philippines, we have Philippine Peso as the unit of measuring accountable economic transactions. So dapat na may measure natin siya in Philippine Peso in general. If hindi man, of course, merong ibang unit of measuring. We also have to take note that there are
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different measuring bases. Measuring basis. Okay, so pag -aaral Okay? So, pag -aaralan nyo yan sa higher accounting. So, for now, para lang ma -familiarize kayo, meron tayong tinatawag na historical cost, current cost, realizable cost, realizable value, and present value. So, yung pinaka -common na ginagamit natin sa accounting or pag
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-measure ng financial transaction is yung historical cost. So, recitation. So, this process is the reason why accounting has been called the universal language of business. So, tapos na natin to. Dapat alam mo na to, dinaanan na natin to kanina sa pinakaumpisa. Identifying, communicating, measuring, or
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summarizing. The correct answer is communicating. Okay? So, ano ba yung communicating process? When we say communicating, it is the process of preparing. and distributing accounting reports to potential users of accounting information. So, this is the reason why accounting has been called the universal language of business.
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Again, sabi nga natin kanina, identifying and measuring are pointless if this information contained in the accounting records cannot be communicated. and interpreted. So, dapat makokommunicate natin. Kumbaga, nagtrabaho ka, so dapat yung tinrabaho mo, pinasa mo sa boss mo. Para maging
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useful yan for the business. Same goes with accounting. So, ganun din. Dapat makommunicate mo yan sa mga gagamit. Actually, so implicit in the communication process, yung... diniscuss natin ganina Din -discuss natin ganina, which is yung recording. classifying and summarizing.
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So, baligan lang natin sila. Bigay natin yung definition naman. So, when we say recording or journalizing, it is the process of systematically maintaining a record of all the economic business transactions after they have been identified and measured.
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So, meaning kapag ka na -identify mo na, diba yan yung first step sa accounting cycle. So, pag -aaralan natin yan in the future. So, next is classifying.
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When we say classifying, it is the process of sorting or grouping of similar and interrelated economic transactions into their respective classes. So, pagka nagka -classify tayo dito, ginugrupo na natin yung magkakapareho. So, it is accomplished by posting to the ledger. So, again, recording sa journal.
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Classifying sa ledger. Ang journal, book of original entry. Kapag ledger, book of final entry. Okay? So, dito, again, kinakategorize natin sila into asset accounts, liability accounts, equity accounts, revenue accounts, and expense accounts. So, again, recording sa journal. So, lastly,
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summarizing. When we say summarizing, it is the preparation of financial statements which include the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity, and statement of cash flows. So, daanan lang natin sandali ano ba ibig sabihin
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itong mga to? Ano ba yung pumapasok or scope ng financial statements? Meron tayong statement of financial position or yung mas kilala sa tawag Meron tayong statement of financial position. natin na balance sheet.
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When we say balance sheet, dyan mo makikita yung assets mo, yung mga pagmamayari mo, yun yun. Liabilities mo, yan yung mga utang mo. And yung capital mo or yung equity na ininvest mo sa business mo. So yan yung laman ng balance sheet or statement of financial position. Also, meron din
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tayong statement of comprehensive income. So, dyan mo naman makikita yung profit or loss. Dyan mo malalaman kung kumikita ba yung business or nalulugi. So, ang accounts na involved dyan ay revenue at expense account. Okay? So, statement of changes in equity naman from the title
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itself. dyan mo makikita yung mga pagbabago sa equity. Dyan mo makikita yung mga... So, paano ba nagbabago ang equity? So, pwede siyang tumaas kapagka nagkakaroon tayo ng additional investments. Pwede rin siyang mabawasan kapag nagkakaroon tayo ng drawing or
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withdrawal. Pwede rin siya also tumaas kapagka nagkakaroon tayong revenue or benta. At pwede rin siyang bumaba kung nagkakaroon tayo ng mga expenses or gastos. When we talk about statement of cash flows naman, ito yung movement naman ng cash natin. Saan ba
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napunta? Paano pumasok at paano lumabas yung cash? So dyan natin makikita. So recitation tayo muna. So recording is the same as blank. Letter A, Journal Entries. Letter B, Debit and Credit Letter C, Trial Balance Letter D, Journalizing Or Letter E, None of the Above So, the
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correct answer is Letter Dog or Journalizing Again, recording, diba? Activity or yan yung process So, dapat ang sagot mo, process din So, journalizing. When we say journal entries, yan yung laman ng recording process natin, which is entries. So, Journalizing Okay? Kaya siya entries
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meaning may debit at may credit. Yan yung letter B. So, debit, yan yung left side, credit, yan yung right side. Trial balance, isa yan sa accounting process. So, dyan natin makikita kung balance ba yung debit at credit side natin. Yung balanse ba yung debit at credit side natin? the correct answer is
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Journalizing or letter D. So what is the overall objective of accounting? So the overall objective of accounting is to provide quantitative financial information about a business that is useful to statement users or yung gagamit or yung stakeholders particularly
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owners and creditors, in making economic decisions. So again, ang objective lang naman natin lagi mag -provide ng information na makakatulong sa decision -making ng gagamit. So again, ang essence ng accounting ay decision usefulness. Okay, so recitation tayo ulit. This
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is the end product or main output of the financial accounting process. or main output of the financial accounting process? Letter A. General Journal Letter B. Statement of Income and Loss Letter C. Financial Statements Letter D. Balance Sheet or Letter E. All of the above
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The correct answer is Letter C. Financial Statements Diba din -iscuss na natin kanina na ang tawag po sa ating main output or yung end product sa paggawa ng accounting ay financial statements. sa ating Yung journal, part lang yan ng accounting process. Yung
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statement of income and loss and yung balance sheet, pasok lang din sila sa loob ng financial statements. Pero yung kabuoan, ang tawag natin doon, financial statements or letter C. Accounting is an information system that measures business activities, processes information into
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reports, and communicates the reports to decision makers. Again, yung definition ng accounting or yung objective ng accounting is to communicate information sa gagamit. So also, yung key product of this information system is a set of financials. The DAC of this information system
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is a set of financial statements. Ayan yung sagot kanina. Yan yung main output. So ano ba ibig sabihin ng financial statements? It is the documents that report financial information about an entity to decision makers or yung users ng financial information.
Speaker A
So recitation tayo ulit. Financial statements should always be presented in a one -year period. for comparative purposes. Absolutely true or false? The correct answer is...
Speaker A
False. Okay, so bakit siya false, sir? Kasi yung financial statements, tama naman na pine -present siya one -year period, pero generally lang. Okay? Tama din naman ang purpose niya is for comparative purpose. kumbaga kung last year kumita ka ng
Speaker A
10 ,000, this year kumita ka ng 20 ,000, next year pwede kang mag -estimate na ang kikitain mo ay 30 ,000. So mako -compare mo kung paano yung growth nung profit mo. Pero again, yung period na yan, hindi siya limited sa one year period. Pwede yung per quarter,
Speaker A
pwedeng twice a year. policy ng business. So, kapag nagpe -present din tayo ng one -year period, meron tayong dalawang klase.
Speaker A
Merong calendar period at meron ding fiscal period. When we say calendar period, meaning yung paggawa natin ng financial statements from January 1 to December 31. Okay? So, yun yung one -year. Okay, so yun yung one year, yung buong taon ng 2021. Year or fiscal
Speaker A
period, it is from the date kung kailan mo inestablish or nag -start yung business mo, plus one year. So for example, today is April 1.
Speaker A
So April 1, yung start ng buong one year period mo hanggang next year ng March 31, 2022. Okay, so yun yung pinagkaiba ng calendar year sa fiscal year. pinagkaiba ng calendar So, another recitation.
Speaker A
The following are parts of a financial statement except... So, ang hinahanap yung hindi kasama. Letter A, statement of changes in equity. Letter B, notes to financial statements. Letter C, statement of financial position.
Speaker A
Letter D, income statement. or letter E, none of the above. So, the correct answer is none of the above. Okay. So, ibig sabihin, lahat yan kasama sa financial statements. Okay. So, again, recap.
Speaker A
Statement of financial position or balance sheet. Income statement or statement of profit and loss or profit or loss. Statement of changes in equity.
Speaker A
So, yan yung changes sa capital natin. Notes to financial statements. Diyan mo naman makikita yung mga breakdowns ng accounts. For example, pinresent mo cash.
Speaker A
So, ano ba laman nung cash mo? Pwedeng cash on hand, cash in bank, petty cash. So, dun mo makikita yung breakdown. Or, if ever man nagpalit ka ng accounting policy or ng accounting estimate. Diyan mo din makikita. dyan mo din makikita. So, who is the father of accounting?
Speaker A
So, yung A to D, halos magkakamukha lang sila. So, nagkakatalo lang sa spelling. So, ano po ba talaga ang tamang spelling? So, it is Luca, L -U -C -A, Pacholi, or Pacholi, whatever it is kung saan ka komportable, P -A -C -I, -O -L -I
Speaker A
Single L lang. So, ang sagot, none of the above. Kung sa name, tama si letter B at si letter D. Sa surname, tama si letter C. So, pag pinag -combine mo yan, yung name ng father of accounting. So,
Speaker A
discuss natin. So, punta tayo sa last topic. History of accounting. Do you know this guy or this person? The first known description of double -entry bookkeeping was first published in 1949 by Luca Pasholi. So, yan si Luca Pasholi. So, kung hirap na hirap ka sa accounting, siya
Speaker A
ang sisihin mo. Hindi. Siya lang naman yung nag -improve, pero hindi siya talaga nag -umpisa ng accounting. So, siya yung tinatawag na father of modern accounting or father of accounting. So, recitation tayo ulit para matest natin yung knowledge mo Each transaction affects at least one account
Speaker A
So, true or false? We haven't discussed this pero for the sake lang na magkaroon kayo ng idea, let's answer So, the correct answer is false Kasi, we follow double entry bookkeeping Yun nga yung in -improve ni Luca Pasholi, di ba? So, meaning,
Speaker A
kapag may transaction, it affects at least two accounts. Meaning, may debit, may credit. So, dapat balance. Next.
Speaker A
Debit means increase and credit means decrease. Is it absolutely true or false? The correct answer is False Okay? So when we talk about debit Hindi ibig sabihin nun increase When we talk about credit Hindi ibig sabihin nun agad
Speaker A
decrease Kasi dapat Alam mo at kailangan mong i -consider Ang normal balances Okay? Kasi may mga accounts na nag -increase sa debit may mga accounts na nag -i -increase sa credit, may mga accounts na nag -de -decrease May
Speaker A
mga accounts na Nag -increase sa credit at may mga accounts na nag -i -increase sa credit. So alamin mo yung normal balance. For example, asset. Ang normal balance ng asset ay debit.
Speaker A
So doon siya mag -i -increase. So tama yung statement na una, if asset lang ang pinag -uusapan natin. Pero pagka ang pinag -uusapan naman natin ay capital. Yung capital ay nasa right side. naman natin ay capital. Yung capital ay nasa right side
Speaker A
or yung normal balance nga ay right side or credit. So mali na yung second statement. So again, take note na hindi ibig sabihin ng debit ay increase at hindi ibig sabihin ng credit ay decrease.
Speaker A
Alamin ang normal balances ng accounts. Next, another recitation. bookkeeping is concerned with how and accounting is concerned with why. Bookkeeping is concerned Is it absolutely true or false?
Speaker A
The correct answer is absolutely true. Okay, so bookkeeping, procedural lang yan, paulit -ulit. Ibig sabihin how yung concern natin, paano ba ginawa? Pagka -accounting ang pinag -uusapan natin, we are concerned with why. Pagka -accounting ang pinag -uusapan natin, we are concerned
Speaker A
with wise. Bakit? mo inad? Bakit mo minainos? Bakit mo kinonsider? Bakit hindi mo kinonsider? So, mas malawak ang accounting. Okay?
Speaker A
Next. Which of the following is incorrect? So, ito yung basic accounting equation. So, dapat may idea ka na dito. Regardless kung na -discuss natin ito or hindi. kasi ito yung pinaka -basic.
Speaker A
So, the correct answer is letter E. So, bakit letter E, sir? So, i -apply mo dito yung knowledge mo about basic mathematics. Okay? So, for sure, meron kayong mathematics na subject.
Speaker A
So, yung rule dito ng transposition. So, yung letter A, yan yung pinaka -accounting equation. Asset is equals to liability plus capital.
Speaker A
So, yung letter B, apply natin. Yung isang account, kapag ka naka -positive siya sa isang side, kapag nilipat natin siya sa kabila, magiging negative. So, kung negative naman siya, pagka ililipat natin siya sa kabila, magiging positive. So, yung letter B, if you check, tingnan
Speaker A
mo, yung capital nag -stay. siya sa right. Yung asset nag -stay siya sa left.
Speaker A
Ang nabago yung liability. So yung liability, dating positive, nung nilipat sa left, naging negative. So tama pa din yan. Letter C. So ganun din, yung liability, positive pa rin sa right. Yung asset, positive pa rin sa left. Yung capital, nung nilipat mo siya sa debit or sa left side,
Speaker A
naging deduction. Yung capital, nung nilipat mo siya sa debit or sa left. So, tama pa rin. Letter D, bakit tama pa din? Kasi, nagpalit man yung capital at liability, pareho pa rin silang nasa right side. So, walang magbabago sa sign. So, again, if nalilito
Speaker A
ka pa, balikan mo yung rules sa addition, deduction, multiplication, and... division ng positive and negative integers.
Speaker A
So that's it for today guys. That's the end of my presentation which is yung first part or part 1 ng introduction to accounting. So if umabot ka sa part na to, thank you so much for staying and studying with me. I hope na
Speaker A
natuto ka and marami kang baong learning from this tutorial. If you like this video, baka naman share mo naman to subscribe. If you like this video, baka naman, share mo naman to sa friends mo or anyone na nahihirapan sa accounting. I will post
Speaker A
more accounting tutorials, so stay tuned. So this is my YouTube channel, so if you want to follow me or subscribe to my account, so search nyo lang SirNJTV, lalabas na yung account ko. Also, I do have Facebook page,
Speaker A
SirNJTV lang din, as well as Twitter account, wala pang followers. At the last, Twitter account, wala pang followers. Also, Instagram account, wala pa rin followers. So, make sure to follow me on these social media platforms. So, thank you again. God bless and stay safe, kids.
Topics:accounting basicsintroduction to accountingfinancial informationaccounting definitionsbusiness accountingaccounting principleseconomic decision makingfinancial reportingaccounting standardsaccounting tutorial
