# Introduction to Accounting and Business

## Page 1: Lesson Title
- **Introduction to Accounting and Business**

## Page 2: Lesson Objectives
- Apply accounting concepts and principles to business situations.
- Learn the different functions of Business Organizations.
- Define business and the difference between Business Operations.
- Define and use accounting terms.

## Page 3: What is Business?
- A business is an organization or enterprising entity engaged in commercial, industrial, or professional activities.

## Page 4: Basic Elements of Business
- **Investments**
- **Production of Goods and/or Services**
- **Satisfaction of People’s Needs**
- **Profit Organization**
- **Contribution to Economic Development**

## Page 5: Business Organizations
### A. Single or Sole Proprietorship
- Owned by one person.
- Owners keep all the profit.
- Simple decision-making.
- Easy to form.

### B. Partnership
- Owned by two or more individuals.
- Income is divided among partners.
- Higher capital investment due to multiple investors.

### C. Corporation
- At least five owners called shareholders.
- Greater capital generation from multiple shareholders.
- More taxes on net income.
- Net income distributed to shareholders upon Board of Directors' declaration.

## Page 7: Business Operations
1. **Service Business**: Renders services to clients for a fee.
2. **Merchandising Business**: Buys goods from suppliers and sells them to customers with a markup.
3. **Manufacturing Business**: Buys raw materials, processes them into finished products, and sells them.

## Page 10: What is Accounting?
- The art of recording, classifying, and summarizing significant financial information.
- Known as the Language of Business.

## Page 11: Accounting and Financial Information
- Accounting communicates financial information through financial statements.
- **Users/Stakeholders**: Government, Employees, Customers, Suppliers, Lenders, Investors.

## Page 12: Users of Financial Information
### Internal Users
- **Investors/Owners**: Need information on expected returns.
- **Employees**: Concerned with profitability and stability.

### External Users
- **Lenders**: Interested in the business's ability to repay loans.
- **Suppliers and Trade Creditors**: Want assurance of payment capability.
- **Customers**: Need information on product supply and quality.
- **Government and Agencies**: Require data for regulation and tax collection.
- **Public**: Varies in interest regarding the business.

## Page 14: Phases of Accounting
1. **Recording or Journalizing**: Writing transactions in order.
2. **Classifying**: Sorting transactions by nature.
3. **Summarizing**: Creating financial statements from grouped transactions.
4. **Interpreting**: Evaluating economic performance for decision-making.

## Page 15: Accounting Process
1. Gathering of Data.
2. Transforming Data to Reliable Information.
3. Communicating Information to Stakeholders.
   - **Statement of Comprehensive Income**: Shows income and expenses.
   - **Statement of Changes in Owner’s Equity**: Reflects changes in owner’s investments.
   
## Page 16: Financial Statements
- **Statement of Financial Position**: Details assets, liabilities, and owner’s equity.
- **Statement of Cash Flows**: Summarizes cash generation and usage.
  - Operating, Financing, and Investing cash flows.
- **Notes to Financial Statements**: Explain accounting policies and data.

## Page 20: Accounting Areas
1. **Basic Accounting or Bookkeeping**: Analyzing, recording, and summarizing transactions.
2. **Financial Accounting**: Preparing general-purpose financial statements.
3. **Cost Accounting**: Determining and controlling costs.
4. **Managerial Accounting**: Providing information for planning and control.
5. **Auditing**: Independent examination of financial statements.
6. **Government Accounting**: Fund accounting for government services.
7. **Taxation**: Preparing tax returns and determining tax liabilities.

## Page 22: Regulatory Bodies
- **Professional Regulation Commission (PRC)**: Licenses all professions, including accountancy.
- **Professional Regulatory Board of Accountancy**: Supervises accountancy practice and licensure.

## Page 23: Philippine Institute of Certified Public Accountants (PICPA)
- National organization for CPAs in the Philippines.
- Addresses issues affecting members and accounting standards.
- Collaborates with various CPA associations.

## Page 24: The Accounting Profession
- **CPAs**: Expected to uphold ethical standards.
  - **Principles**: Integrity, Objectivity, Professional Competence, Confidentiality, Professional Behavior, Technical Standards.
- **Sources of Ethical Standards**: Board of Accountancy, Financial Reporting Standards Council, SEC, Auditing and Assurance Standards Council, Relevant Legislation