Business Accounting Reviewer

Business

Investment (capital, skills/talent)

• Production of goods & services.

• Satisfaction of people’s needs.

• Profit generation.

• Contribution to economic development.

Business Organizations

• Single or Sole Proprietorship

• Partnership

• Corporation

Single or Sole Proprietorship

• Owned by one person

• Owner enjoys all the income

• Owner shoulders all the losses

• Decision making is simple

• Capital investment is limited

Partnership

• Owned by two or more people (partnership)

• The partners contribute funds, property, or services to the business.

• Income and losses are divided among the partners.

• Decision making is shared.

Corporation

• Shareholders

• R.A. No. 11232 (one person corp.)

• Decision making is vested on the Board of Directors.

• Income can be distributed in the form of dividends (profit) upon declaration of BOD

• It can stand alone (can sue & be sued).

• Owned by 5 or more

• Shares of stock

• Publicly traded corporations.

• Profit is called dividends in a corporation.

Business Operations

• Service Business

• Merchandising Business

• Manufacturing Business

proprietorship

what do you call a business organization that is owned by one person?

partnership

what do you call the people of a business organization that is owned by two or more person?

shareholders

what do you call the people of a business organization that is owned by a corporation?

R.A. No. 11232

what is the law about a one person corporation?

dividends

what do you call the profit in a corporation?

what are the business operation?

Service Business

Manufacturing Business

Merchandising Business

Service Business

a business operation that renders services to the clients.

Merchandising Business

A business operation that buys goods from suppliers and sells them to the customers with markups.

Manufacturing business

Business that buys raw materials, processes them to become finished products and sells the finished products to the customers.

Operating Activity

Day-to-day function of a business like selling, buying, and producing goods or services.

Investing Activities

• involving long-term assets such as acquisition and purchasing of properties and equipment.

Financing Activities

Raising funds via equity or debt.

Luca Paciolo

father of accounting.

ACCOUNTING

• the art of recording, classifying, summarizing, interpreting financial transactions of a business.

• Quantitative information primarily financial in nature about economic entities that is intended to be used in making economic decisions.

Accounting Process

• Gathering of data

• Transforming data into reliable information.

• Communicating information to stakeholders. (user of information)

R.A. 9298

 Philippine Accountancy Act of 2004

Practice of Public Accountancy

Rendering professional services to multiple clients for a fee, including auditing tax, tax preparation, and designing accounting systems.

Practice in Commerce and Industry

• Involvement in decision-making requiring professional accounting knowledge, such as when a position requires a CPA.

Practice in Education/Academe

• Teaching accounting and auditing and related subjects in educational institutions

Practice in Government

• Practice in government agencies, including the decision-making process involving professional accounting knowledge.

Basic Accounting

• Also called as bookkeeping.

• This area is basically procedural that includes the process of analyzing business documents, recording, classifying business transactions and summarizing.

bookkeeping

other term for basic accounting?

Financial Accounting

This area focuses on the preparation and presentation of general purpose financial statements and other financial reports to measure the company’s operations and financial condition to be used as the basis of different stakeholders in making economic decisions.

Cost Accounting

• This area deals with cost determination and cost control particularly those costs incurred in producing goods and services.

Managerial Accounting

• Provides all the type of financial and non-financial information needed in the planning and control functions of the management towards the attainment of more effective and efficient business operation.

Auditing

• Involves analytical work of independent examination of the financial statement for the purpose of expressing an opinion as the fairness of their presentation.

Government Accounting

• Also called Fund Accounting.

• This area is concerned on how government funds are utilized to assure proper custody and disposition of these funds  to deliver basic services to the community.

fund accounting

other term for government accounting?

TAXATION

• The preparation of tax returns, determination of tax liabilities of a company and the preparation of tax plans for certain activities to legally minimize tax payments.

Professional Regulation Commission

Commission is a government agency directly under the office of the president of the Philippines. It takes care of the licensing of professions in the Philippines.

Integrity

I in IMPACT

Merit

M in IMPACT

Professionalism

P in IMPACT

Accountability

A in IMPACT

Competence

C in IMPACT

Teamwork

T in IMPACT

Board of Accountancy

• The board is mandated among others to supervise the registration, licensure and practice of accountancy in the Philippines.

• It promulgates the code of ethics for the practice of Accountancy profession.

• The board is also responsible for the preparation and conduct of the regular CPA licensure exam.

Philippine Institute of Certified Public Accountant

• the national organization of all CPAs in the Philippines. It addresses vital issues and concerns affecting its members and practice of profession.

Gerard B. Sanvictores

NATIONAL PICPA PRESIDENT OF 2025-2026

Dr. Derick S. Figueroa

TARLAC CHAPTER PRESIDENT OF PICPA

Jonel C. Panlilo

DEAN & FORMER PRESIDENT OF PICPA TAARLAC CHAPTER

Olivette P. Flores - Viado

TARLAC PICPA SECRETARY (5TH YEAR)