FABM 1

Introduction to Accounting

Accounting is widely considered as the “Language of business”

“Accounting is the mechanism by which an organization's economic events are identified, registered and distributed users" - (Weygandt, J. et. al)

3 terms of accounting: Identifying, Recording and Communicating. I-R-C

Identifying requires selection of economic.

An organization's economic events are referred to transactions.

All events that can be estimated in terms of money are know as "economic events"

Recording includes maintaining a chronological diary events measured in peso.

Journals and ledgers referred to description are the diaries which will addressed in the future chapters.

Natures of Accounting

Accounting is a service activity**. It provides decision makers with support by providing them with financial.**
Accounting is a process. A procedure of doing se particular job step by step in accordance with the aims or objectives. It performs the basic taks of gathering, processing and transmitting financial information. Accounting is identified as a process, recording, classifying, summarizing and reporting financial data.
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