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    Week 2 - Lesson 2 Module ABM1

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    sweetzel

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    Week 2 - Lesson 2 Module ABM1

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    sweetzel
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    2 views3 pages

    Week 2 - Lesson 2 Module ABM1

    Uploaded by

    sweetzel

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    GRADE 11 School Grade & ABM11a

    LEARNING Section
    MODULES Teacher Learning Area Fundamentals of Accountancy,
    Subject Code Business and Management 1
    (ABM1)
    Teaching Dates WEEK 22 : January 11 – 15 , 2021 Quarter 3rd

    A. MOST ESSENTIAL At the end of this module, you will be able to:
    LEARNING 1. Differentiate the branches of accounting
    COMPETENCIES or 2. Explain the kinds/types of services rendered in each of these branches.
    OBJECTIVES - MELCs
    B. CONTENT Branches of Accounting
    C. LEARNING Teacher’s Guide (TG) , CBLM – Bookkeeping NC III
    RESOURCES

    LESSON 2

    BRANCHES OF ACCOUNTING

    “Accounting is divided into several branches to better serve the needs of different users with varying
    information needs. These branches sometimes overlap and they are often closely intertwined.”

    1. Financial Accounting is the broadest branch and is focused on the needs of external users. Financial
    accounting is primarily concerned with the recognition, measurement and communication of economic
    activities. This information is communicated in a complete set of financial statements.

    2. Management (or Managerial) Accounting


    emphasizes the preparation and analysis of accounting information within the organization. The
    objective of managerial accounting is to provide timely and relevant information for those internal
    users of accounting information, such as the managers and employees in their decision-making needs.
    Managerial accounting involves financial analysis, budgeting and forecasting, cost analysis, evaluation of
    business decisions, and similar areas.

    3. Government Accounting is the process of recording, analyzing, classifying, summarizing,


    communicating and interpreting financial information about the government in aggregate and in detail
    reflecting transactions and other economic events involving the receipt, spending, transfer, usability
    and disposition of assets and liabilities. This branch of accounting deals with how the funds of the
    government are recorded and reported.
    4. Auditing
    External Auditing refers to the examination of financial statements by an independent CPA (Certified
    Public Accountant) with the purpose of expressing an opinion as to fairness of presentation and
    compliance with the generally accepted accounting principles (GAAP). The audit does not cover 100%
    of the accounting records but the CPA reviews a selected sample of these records and issues an audit
    report.

    Internal auditing deals with determining the operational efficiency of the company regarding the
    protection of the company’s assets, accuracy and reliability of the accounting data, and adherence to
    certain management policies. It focuses on evaluating the adequacy of a company's internal control

    1
    structure by testing segregation of duties, policies and procedures, degrees of authorization, and other
    controls implemented by management.

    5. Tax Accounting helps clients follow rules set by tax authorities. It includes tax planning and
    preparation of tax returns. It also involves determination of income tax and other taxes, tax advisory
    services such as ways to minimize taxes legally, evaluation of the consequences of tax decisions, and
    other tax-related matters.
    6. Cost Accounting refers to the recording, presentation, and analysis of manufacturing costs. Cost
    accounting is very useful in manufacturing businesses since they have the most complicated costing
    process. Cost accountants also analyze actual and standard costs to help managers determine future
    courses of action regarding the company's operations.
    7. Accounting Education This branch of accounting deals with developing future accountants by creating
    relevant accounting curriculum. Accounting professionals can become faculty members of educational
    institutions. Accounting educators contribute to the development of the profession through their
    effective teaching, publications of their research and influencing students to pursue careers in
    accounting. Accounting teachers share their knowledge on accounting so that students are informed of
    the importance of accounting and its use in our daily lives.
    8. Accounting Research focuses on the search for new knowledge on the effects of economic events on
    the process of summarizing, analyzing, verifying, and reporting standardized financial information, and
    on the effects of reported information on economic events. Researchers typically choose a subject area
    and a methodology on which to focus their efforts.

    DO NOT RETURN THIS MODULE

    2
    SELFCHECK

    Fundamentals of Accountancy, Business and Management 1 (ABM1)


    BRANCHES OF ACCOUNTING

    Name: _______________________________________ Date: _________________________


    Grade/Section/Specialization: ___________________ Score: ____________/ 15 pts._____

    A. IDENTIFICATION: Identify what branch/area of accounting renders the following services. Write your answer on
    the space provided. (10 pts.)

    _________________________ 1. Preparation of general-purpose financial statements.


    _________________________ 2. Evaluation of the performance of a sales department.
    _________________________ 3. Develop standards to address a new business set up.
    _________________________ 4. Review tax compliance of the business.
    _________________________ 5. Evaluate whether a branch of the business complies with the collection and deposit
    policy of the company.
    _________________________ 6. Review whether the financial statements are presented fairly and in compliance with
    Accounting Standards.
    _________________________ 7. Report on the spending of government funds.
    _________________________ 8. Report on the total cost of materials and labor used in the production.
    _________________________ 9. Conducting lectures on accounting topics.
    _________________________ 10. Preparation and analysis of accounting information within the organization.

    B. ESSAY. Answer the question and explain your answer. (5 pts.)

    1. What branch of accounting do you want to focus on and why?

    PLEASE RETURN THIS PAGE

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