b. Luca Pacioli – He published the first known description of Double- Entry Bookkeeping titled ― Summa de Arithmetica, Geometria, Proportioni et Proportionalite (Everything about arithmetic, geometry and proportion)‖ published in Venice, Italy on November 1494. c. Double-entry Bookkeeping – a practice in accounting where each transaction has a corresponding and equal credit and debit accounts
FINAL EXAM REVIEWER – Fundamentals of Accounting / Principles of Accounting 1 Page 2 d.International Accounting Standards(IAS)–ground rules in financial reporting in an international setting set out the recognition, measurement, presentation and disclosure requirements of transactions and events that are important to financial statements established by the International Accounting Standards Council (IASC) replaced by“Financial Accounting Standards”as released by the renamed IASC now referred to as Financial Accounting Standards Boardii.Philippine Financial Reporting Standards (PFRS) -established by the Financial Reporting Standards Council (FRSC) tasked to formalize the accounting standards in the Philippines -replacedthe Philippine Accounting Standards (PAS) passed by the Accounting Standards Council (ASC) now know as the FRSC iii.The Accounting Profession a.Republic Act No. 9298 -Philippine Accountancy Act of 2004 - law regulating the practice of Accountancy b.Board of Accountancy (BOA) -body authorized by law to promulgate rules and regulations in accounting c.Professional Regulations Commission (PRC) -issues the ―certificate of registration‖ upon favorable recommendation of BOAiv.Forms of business organization as to ownership and activity a.According to Ownership 1.Sole/Single Proprietorship 2.Partnership 3.Corporation-most popularb.According to Activity 1.Service-rendering industry and skills 2.Merchandising-buying and selling of goods 3.Manufacturing-production and selling of finished goods v.Basic professional values and business ethics a.GAAP (Generally Accepted Accounting Principles) -rules and procedures that are accepted in the application of Accounting -conventionalbecause it is developed based on experience and usage b.Corporate Social Responsibility -ensures alignment between the goals of the managers and shareholders c.Triple Bottom Line -concerned with social, environmental and economic bottom line d.Building blocks of accounting 1.Ethics -standards and conduct by which actions are judged as right/wrong 2.Sustainability Reporting -meeting the needs of the present without compromising the ability of future generations to meet their own needs vi.Financial Statements -means by which the information accumulated and processed in financial accounting is periodically communicated to the users -Types of Financial Statements: a.Income Statement-presents income, expenses and profit for a specific period of time b.Statement of Changes in Equity-summarizes the changes in owner’s equity for a specific period of timec.Statement of Financial Position-
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