PT 3 Accounting

THE DIFFERENT
BRANCHES OF
ACCOUNTING
1) FINANCIAL ACCOUNTING
It deals with the theoretical framework covering
accounting principles and concepts relative to
measurement and valuation as applied to assets,
liabilities, stockholders equity, retained earnings,
revenue, and expense accounts in relation to the
preparation and presentation of financial statements.
These financial statements include disclosure
requirements as governed by the GAAP.
It provides information that is used for decision
making by both internal (owners, shareholders,
management) and external ( creditors, potential
investors, employees, government agencies) users.
2) MANAGEMENT ACCOUNTING
As the Institute of Management Accountants (IMA)
defines, is a profession that involves partnering in
management decision making, devising planning and
performance management systems, and providing
expertise in financial reporting and control to assist
management in the formulation and implementation
of an organizations strategy.
3)Government Accounting
Section 109 of Presidential Decree (PD) No. 1445
states that it encompasses the process of analyzing,
classifying, summarizing, and communicating all
transactions involving the receipt and disposition of
government funds and property, and interpreting the
results thereof.
Agencies responsible in performing government
accounting:
-Commission of Audit (COA)
-Department of Budget and Management (DBM)
-Bureau of Treasury (BTr)
4)AUDITING
It is the examination and review of accounting reports in

order to ascertain their fairness, propriety and reliability.
The independent auditors opinion provides reasonable
assurance that the financial statements under
examination fairly present the companys financial
position and results of operation in accordance with the
GAAP.
5) TAX ACCOUNTING
Tax services provided by the accountants include the
preparation of monthly value added tax, percentage
tax, expanded withholding tax returns, quarterly and
annual tax returns, and any other taxes applicable to
business.
In order to avoid tax problems with the Bureau of
Internal Revenue (BIR) and other local agencies,
accountants work closely with clients through proper
tax compliance while advising them about ways and
measures to minimize taxes.
6) COST ACCOUNTING
It includes the collection , determination, allocation,
assessment, interpretation, and control of cost data,
particularly the cost of production in a manufacturing
concern.
Cost of Production- includes the raw materials, direct labor,
factory overhead, and all other costs involved incident in
each stage of production of the finished goods.
7) ACCOUNTING EDUCATION
It involves planned grading and formal teaching in an

educational institution.
Professional accountant imparts knowledge to
students enrolled in an accounting subject either in
basic or higher accounting subjects. Accountants in
the academe usually take post graduate studies to
achieve the required tenure.
8) ACCOUNTING RESEARCH
It involves conducting a careful and diligent study
aimed at discovering and interpreting facts, revising
accepted theories in the light of new facts, or the
practical application of such new or revised theories
for the generation of a new knowledge.
It includes collecting information about a particular
subject in order to decide and implement new
standards in accounting, presenting current events
that might affect the profession, or discovering new
theories that will have an impact on existing
accounting knowledge.
LEGAL REQUIREMENTS IN THE
FORMATION OF A BUSINESS
FOR SOLE PROPRIETORSHIP
It is the easiest business to register.

It is registered with the Department of Trade and
Industry (DTI) under its Bureau of Trade Regulation
and Consumer Protection.
FOR PARTNERSHIP
The business is registered with the Securities and Exchange
Commission (SEC) upon submission of the following
requirements:
-Proposed Articles of Partnership (C:\Users\rrrrrrrrrrrrUser
\Desktop\accounting\64234411-Sample-Articles-of-Partnership.pdf)
-Name Verification Slip (C:\Users\User\Desktop\accounting\242619137-Name-Verification-Slip-SEC-Philippines.pdf

-Bank Certificate Deposit (C:\Users\User\Desktop\accounting\bank certificate.JPG
-Alien Certificate of Registration, (), Special Investors Resident
Visa.()g or proof of other types of visa (in case of foreigners)
-Proof of Inward Remittance (in case of non-resident aliens)
C:\Users\User\Desktop\accounting\29063975.png
FOR CORPORATION
The following are the incorporation documents
required to be filed with the Securities and Exchange
Commission (SEC):
-Articles of Incorporation
C:\Users\User\Desktop\accounting\Sample-Articles-of-Incorporation-for-California-Form-Template.png
-By-laws C:\Users\User\Desktop\accounting\Sample-Corporate-Bylaws-Form-Template.png
-Treasurers Affidavit which should state compliance

with the authorized subscribed and paid-up capital
stock requirements. C:\Users\User\Desktop\accounting\treasurers affidavit.jpg
-Bank certificate which should state that the paid-up

capital portion of the authorized capital stock has
been deposited to the issuing bank
C:\Users\User\Desktop\accounting\bank certificate (2).jpg
WHAT SHOULD BE STATED UPON
REGISTRATION OF A CORPORATION?
- The name of the corporation which must not be
identical, or deceptively or confusingly similar to any
existing corporation
- The purpose of the corporation
- Principal office of the corporation
- The term or life of the corporation which should not
exceed fifty years. This corporate lifetime may,
however, be extended for another fifty years but the
extension must not be effected earlier than five
years before the expiration of its term.
FOR A COOPERATIVE
The business is registered with the Cooperative
Development Authority (CDA) upon submission of
the following documents:
-Economic Survey
-Notarized Articles of Cooperation and By-Laws
-Bonds of accountable officer or officers
-Notarized sworn statement of the treasurer certifying
that the required subscription and payment of the
authorized share capital and paid-up capital have been
fulfilled
3 TYPES OF BUSINESS
ACTIVITIES/ OPERATIONS
1) SERVICE
It is a type of business operation engaged in the
rendering of services.
It is a type of business that earns based on the skill
or quality service it offers.
In order for this type of business to grow, its
employees or people have to be trained.
Constant monitoring , evaluating, and updating of
knowledge of the staff are necessary. He has to
continuously maintain, if not improve, the quality of
service offered to his customers.
Examples: dental clinic, barber shop, laundry service
2) TRADING/MERCHANDISING
It isa type of business engaged in the buying and selling of
goods.
It includes the process of managing and marketing the
products sold to its customers.
Sales should be optimized in order to make money.
Customer demands have to be satisfied with the quality of
products sold.
The tedious processes of forecasting, purchasing, pricing, and
marketing of products in order to generate sales are essential
in the trading or merchandising business.
Examples: grocery, sari-sari store
3) MANUFACTURING
It is engaged in the production of items to be sold.
It involves the purchasing and converting of raw
materials to finished goods.
It incurs overhead costs aside from the wages and
materials used in the production of goods.
A rise in price in one of these costs causes an
increase in the price of good produced.
Careful planning is involved here because there are
certain expenses incurred even during periods of
non-manufacturing such as rent, insurance, worker
benefits, and machine depreciation.

PT 3 Accounting

Uploaded by

Copyright:

Available Formats

PT 3 Accounting

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PT 3 Accounting

Uploaded by

Copyright:

Available Formats

THE DIFFERENT

It is the examination and review of accounting reports in

It involves planned grading and formal teaching in an

It is the easiest business to register.

-Name Verification Slip (C:\Users\User\Desktop\accounting\242619137-Name-Verification-Slip-SEC-Philippines.pdf

-Treasurers Affidavit which should state compliance

-Bank certificate which should state that the paid-up

You might also like