Lesson 1_Introduction to Accounting PDF

August 15, 2024 FABM 1 Add your idea here INTRODUCTION TO ACCOUNTING Add your idea here...

August 15, 2024 FABM 1 Add your idea here INTRODUCTION TO ACCOUNTING Add your idea here Definition, aspects, and history of accounting Add your idea here Add your idea here Prepared by: Lovely M. Yap  Adamsonian Prayer Attendance PRELIMINARIES  Define accounting Describe its nature and OBJECTIVES functions in business Know the origin and history of accounting  WITH YOUR PARTNER, LIST DOWN AT LEAST 3 TO 5 WORDS THAT DESCRIBES ACCOUNTING (5 MINUTES) From the words you have listed, make a definition of accounting Debit Credit Back to Agenda Page  ACCOUNTING Is the systematic process of measuring and reporting relevant financial information about the activities of an economic organization or unit. Back to Agenda Page  PICPA A service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions Back to Agenda Page AICPA the art of recording, classifying and summarizing in a significant manner and in terms of money, transaction and events, which are in part at least of a financial character and interpreting the result thereof  SYSTEMATIC A series of actions that produce something PROCESS or that lead to a particular result A skill acquired by experience, study or ART observation NATURE OF SERVICE ACTIVITY The occupation or function of serving ACCOUNTIN G A set of interrelated components that work INFORMATION SYSTEM together to achieve a common purpose Users have the liberty to make economic A MEANS, NOT AN END decisions  RECORDING ASPECTS CLASSIFYING OF SUMMARIZING ACCOUNTIN G INTERPRETING  Back to Agenda Page BOOKKEEPING ACCOUNTING DIFFERENC E Focused with the recording of Accounting is a broader filed which monetary transactions has a lot of branches  BASIC FUNCTION The generation of relevant and timely financial information for interested parties Wendy Lukas Back to Agenda Page ARE YOU STILL WITH ME? Debit Credit Back to Agenda Page ACCOUNTING Its’ origin and history Debit Credit Back to Agenda Page ANCIENT ACCOUNTING Early Record-Keeping (4000-3000 BCE) Scribe Clay tablets Abacu s s  ANCIENT ACCOUNTING Egyptian and Babylonian Contributions (3000-500 BCE) Babylonians Egyptians used developed a papyrus to write comprehensive code, and record the Code of transactions; Hammurabi, which auditing included laws governing financial transactions.  MEDIEVAL AND RENAISSANCE ACCOUNTING The Roman Empire (500 BCE - 500 CE) Romans developed detailed financial records for public revenues and expenditures  MEDIEVAL AND RENAISSANCE ACCOUNTING The Greeks (500 BCE - 500 CE) Phoenician writing system and Greek alphabet  MEDIEVAL AND RENAISSANCE ACCOUNTING The Renaissance (1300-1600 CE) Introduction of the double- entry bookkeeping system  MEDIEVAL AND RENAISSANCE ACCOUNTING The Renaissance (1300-1600 CE) an Italian mathematician and friar published “Summa de Arithmetica, Geometria, Proportioni et Proportionalita” in 1494 "Particularis de Computis et Scripturis" - topic of record keeping and double-entry accounting collaborator with Leonardo da Vinci the father of accounting  MEDIEVAL AND RENAISSANCE ACCOUNTING The Renaissance (1300-1600 CE) the original idea of double entry bookkeeping His manuscript “Della Mercatura et del Mercante Perfetto” (of Trading and the Perfect Trader) was never printed  MODERN ACCOUNTING The Industrial Revolution (1760-1840)  MODERN ACCOUNTING The Industrial Revolution (1760-1840) The Industrial Revolution transformed the accounting profession, and its impact can still be felt today. Advances in technology continue to shape the way accountants work, and the demand for skilled accounting professionals continues to grow.  MODERN ACCOUNTING The Industrial Revolution (1760-1840) England transformed accounting into an actual profession July 6, 1854 – Queen Victoria granted royal charter to the Institute of Accountants in Glasgow, Scotland thereby creating the profession of chartered accountants (CA) 1887 – the birth of the first US national accounting society (AAPA)  THE 20TH CENTURY: STANDARDIZATION AND REGULATION Professional bodies like the American Institute of Certified Public Accountants (AICPA) and the International Federation of Accountants (IFAC) were founded to standardize practices and uphold ethical standards.  THE 20TH CENTURY: STANDARDIZATION AND REGULATION Due to economic depression, Securities and Exchange Commission (SEC) was formed 1973 - Financial Accounting Standards Board was established to set accounting and auditing standards FASB + GASB = Generally accepted accounting principles (GAAP)  THE DIGITAL AGE The Rise of Computerized Accounting (1980s-Present) Software such as QuickBooks, Sage, and SAP enabled businesses to manage their finances more efficiently, reducing manual errors and saving time.  THE DIGITAL AGE Cloud Accounting and Artificial Intelligence Cloud accounting allows real-time access to financial data from anywhere AI and machine learning are being used to automate routine tasks  Back to Agenda Page SUMMAR Y Accounting is a means, not an end. QUESTIONS OR CLARIFICATIONS