CRT LEARNING MODULE

Subject Code FABM1

Subject Title Fundamentals of Accountancy, Business &
Management 1
Duration 80 hours/semester
Module Title Introduction to Accounting

College for Research & Technology of Cabanatuan

Document No. 001-2020
Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 1
Module 1: Introduction CRT
to Accounting
HOW TO USE THIS LEARNING MODULE
Welcome to the module in Introduction to Accounting. This module covers the
introduction to accounting. It gives you an understanding about the definition,
nature and functions of accounting in business; differentiate bookkeeping from
accounting, and understand the history of accounting. Discuss the main areas of
accounting and what kind of services they render. Identify the internal and external
users of accounting.

You are required to go through a series of learning activities in order to

complete each learning outcome of the module. Each of the learning outcomes is
provided with Modules. Follow these activities on your own and answer the self-
check at the end of each learning outcome. If you have questions, don’t hesitate to
ask your facilitator for assistance.

This module was prepared to help you achieve the required competency in
Introduction to Accounting. This will be the source of Information for you to acquire
knowledge and skill in this particular trade independently and at your own pace, with
minimum supervision of help from your instructor.

 Talk to your online facilitator and agree on how you will both organize the
Training of this unit. Read each through the module carefully. It is divided into
sections, which cover all the skills and knowledge you need to successfully
complete this module.
 Work through all the information and complete the activities in each section.
Read Modules and complete self-check. Suggested references are included to
supplement the materials provided in this module.
 Most probably your facilitator will be your supervisor or manager. Your online
facilitator will support and correct you.
 Your online facilitator will tell you about the important things you need consider
when you are completing activities and it is important that you listen and take
notes.
 You will be given plenty of opportunity to ask questions and practice on the
job. Make sure you practice new skills during regular work shifts. This way you
will improve both your speed and memory and also your confidence.
 Talk to more experienced workmates and ask for their guidance.
 Kindly answer the self-check questions in this module or at the LMS (EDMODO)
to test your own progress.
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Module 1: Introduction CRT
to Accounting
 Ask your online facilitator work through the activities: ask for written feedback
on your progress. Your online facilitator keeps feedback/pre-assessment reports
for this reason. When you have successfully completed each element, ask the
facilitator to mark on the reports that you are ready for assessment.
 When you have completed this module, and feel confident that you have
sufficient practice, your online facilitator will arrange an appointment with
registered assessor’s to assess you. The results of your assessment will be
recorded in your competency Achievement Record.

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 3
Module 1: Introduction CRT
to Accounting
FUNDAMENTAL OF ACCOUNTANCY, BUSINESS AND
MANAGEMENT 1

Contents of this Learning Module

No. Module Title Topic Code

1 Introduction to Definition, Nature, Lesson 1
Accounting Function and
History of
Accounting Lesson 2
Branches of
Lesson 3
Accounting
Users of
Accounting

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 4
Module 1: Introduction CRT
to Accounting
 MODULE CONTENT

MODULE TITLE : INTRODUCTION TO ACCOUNTING

MODULE DESCRIPTION:
This module covers the introduction to accounting. It gives you an
understanding about the definition, nature and functions of accounting in business;
differentiate bookkeeping from accounting, and understand the history of
accounting. Discuss the main areas of accounting and what kind of services they
render. Identify the internal and external users of accounting.

Number of Hours:
4 hours

LEARNING OUTCOMES:
At the end of this module you MUST be able to:
1. Demonstrate an understanding about the definition, nature, function and history
of accounting.

2. Differentiate the branches of accounting and explain the kinds/types of services

rendered in each of these branches.

3. Demonstrate an understanding of the external and internal users of financial

information.

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 5
Module 1: Introduction CRT
to Accounting
LEARNING OUTCOMES:
1. Demonstrate an understanding about the definition, nature, function and
history of accounting.
2. Differentiate the branches of accounting and explain the kinds/types of
services rendered in each of these branches.
3. Demonstrate an understanding of the external and internal users of financial
information.

Learning Contents #1
1. Definition and functions of Accounting
2. Function of accounting in business
3. Difference of bookkeeping and accounting
4. History and development of accounting

Learning Content #2
1. Public Accounting
2. Private Accounting
3. Government Accounting
4. Accounting Education

Learning Content #3
1. Internal and external users of accounting information
2. Direct and Indirect users of accounting information

Assessment Criteria
1. Demonstrates new knowledge learned in accounting.
2. Accomplish the assignment, activity and quizzes.

Conditions
The students/trainees must be provided with the following:
1. Paper
2. Learning Materials
3. Pencil/ ball pen

Assessment Method:
1. Written Examination

Learning Activities (Study Guide)

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Module 1: Introduction CRT
to Accounting
 1. Using EDMODO app on your phone or the website on your laptop, go to
the FABM1 CLASS.
2. Click on the FOLDERS section (on menu bar)
3. Click the folder My Modules. The digitized Modules are in this folder.
4. All the Self-Checks are contained in the folder My Quizzes & My
Activity.
NOTE:

For those who are in Modular Learning or for those with limited
access to internet
You may send a picture of your answer to activities or projects via email or
Facebook messenger. Make sure to follow the guidelines for submitting your work.

1. When submitting your file, make sure to convert your file in PDF form. Only
those who submitted in PDF form will be checked.

2. All of our communication systems will be transferred via email or Facebook

messenger. Send your work only in my email. Take note of my gmail
espanolajocelyn8.7@gmail.com.

3. When submitting your file use the following format:

File name sample:
Surname_subject code_activity number
Espanola_FABM1_Activity 1

For those who don’t have laptop or computer

4. You may submit a picture of your work instead a file. Follow the same format
when sending your work via Facebook messenger. My Facebook messenger
Jocelyn.espanola.39

5. For Deadline: You are given 6 days to finish your activity at exactly 5pm to
finish your weekly activity.
For example, if our class is scheduled every Monday, you must submit all of the
activities before 5pm of Saturday.

Learning Outcome #1 - 3
Document No. 001-2020
Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 7
Module 1: Introduction CRT
to Accounting
 Learning Activities Special Instructions

1. Read Module No. 1 Lesson Contained in the Module 1: Introduction to

1 (Definition and Nature of Accounting EDMODO (Module 1 Lesson 1)
Accounting; Function of
accounting in business;
Difference of bookkeeping
and accounting; and history
of accounting)
2. Answer self-check for Module 1
The self-checks are available thru the folder My
Lesson 1 Quizzes & My Activity. The activity is timed (5
minutes). The results will be immediately be
available after clicking SUBMIT and the system
will run through the items incorrectly answered
(and show the correct answer)
3. Read Module No. 1 Lesson 2 Contained in the Module 1: Branches of
(Branches of Accounting) Accounting EDMODO (Module 1 Lesson 2)

4. Answer self-check for Module 1 The self-checks are available thru the folder My
Lesson 2 Quizzes & My Activity. The activity is timed
(15 minutes). The results will be immediately be
available after clicking SUBMIT and the system
will run through the items incorrectly answered
(and show the correct answer)
5. Read Module No. 1 Lesson 3 Contained in the Module 1: Users of Accounting
(Users of Accounting) EDMODO (Module 1 Lesson 3)

6. Answer self-check for Module 1 The self-checks are available thru the folder My
Lesson 3 Quizzes & My Activity. The activity is timed
(10 minutes). The results will be immediately be
available after clicking SUBMIT and the system
will run through the items incorrectly answered
(and show the correct answer)

Module 1.2

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 8
Module 1: Introduction CRT
to Accounting
 Branches of Accounting

Learning Objective: After completing this module, the learners are expected to:

 Differentiate the branches of accounting (ABM_FABM11-IIIa-5)

 Explain the kinds/types of services rendered in each of these branches.
(ABM_FABM11-IIIa-6)

Branches of Accounting

Public Accounting
In public accounting, the accountant performs or offers to perform any activity that
will result to the issuance of an attest report that is in accordance with professional
standards. Such activities include consulting services, personal financial planning
services, the preparation of tax returns, and advice on tax matters for a fee. Usually,
a public accountant works in a firm offering its services to various clients. Certified
Public Accountants (CPAs) refer to those who had passed the liscensure examination
for accountants. In the philippines, some known public accounting firms are SyCip
Gorres Velayo & Co., Isla Lipana & Co., Reyes Tacandong & Co., Punongbayan &
Araullo, Navarro Amper & Co., R.G. Manabat & Co., and BDO Alba Romeo & Co.,
CPAs, among others. The possible career paths in public practice are:

Entry-level positions – Auditor, Tax Accountant, Management Consultant,

Financial Adviser, Forensic Accountant
Middle-level positions – Senior Auditor Manager, Senior Tax Manager, Senior
Consulting Manager/Financial Advirsory Manager
Advance positions – Partner, Senior Partner, Senior Consultant/Financial Advisor

Example of public accounting services are as follows:

External auditing – In external auditing, public accountants examine the
financial statements in order to express an opinion on whether statements
have been fairly presented or not. The auditor critically examines the
accounting records of the client to check if business transactions have been
properly recorded. The auditor the issues an independent audit report of his
or her findings.
Tax preparation and planning services – Some Certified Public Accountants
(CPAs) also offer tax services wherein they advise and help their client in tax
planning and preparing tax returns. In this branch of public accounting, the

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Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
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Module 1: Introduction CRT
to Accounting
 accountant is a tax specialist. He or she is expected to be knowledgeable
about reveneu regulations and tax laws. He or she also represents the clients
in any tax-related case filed by the Bureau of Internal Revenue (BIR)

Management advisory services – Management consulting is an area in public

accounting that involves financial planning and control, and the development
of accounting and computer systems. The accountant advises management
on matters such as the installation of an accounting system, finance,
budgeting, business processes, introduction of new products, and other
business activities.

Private Accounting

Private accounting involves setting up systems of recording business transactions

that are aggregated into financial statements. It includes the development and
interpretation of accounting information intended to assist management in operating
the business.

A private accountant is a salaried employee who deals with the company’s day-to-
day accounting needs. He or she is trained in the processing of accounting
transactions such as billings and account payables. His or her knowledge may be
limited to the areas of accounting for which he or she is responsible for. The possible
career paths in private accounting or in commerce and industry are:
Entry-level positions – Cost Analyst, Investment Analyst, Financial Accounting
and Reporting Staff, Management Accounting Staff, Tax Accounting Staff,
Internal Audit Staff, Financial Analyst, Budget Analyst, Credit Analyst, Cost
Accountant
Middle-level positions – Controller, Senior Information Systems Auditor, Senior
Loan Officer, Senior Fraud Examiner, Senior Forensic Auditor
Advance positions – Chief Financial Officer (CFO), Chief Information Officer

Some branch of accounting under private accounting are as follows:

Finacial Accounting – This branch of private accounting provides economic and
financial information for investors, creditors, and other external users. It uses
a system of reporting designed to meet the information needs of external
users. Financial accounting is governed by an established body of standards
and principles. It focuses on the recording and classifying of business
transaction while applying generally accepted accounting principles (GAAP).

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 10
Module 1: Introduction CRT
to Accounting
 Financial accounting ends in the preparation and presentation of general
purpose financial statements. Thes documents should show the business’
financial position, operating resilts, and cash ectivities. It is also best to
include supporting explanatory notes to theses financial statements to further
explain its report or findings.
Cost Accounting – Cost accounting focuses on accumulating product costs for
financial reporting and decision-making purposes. It covers the reporting of
finanancial information relevant to company operations usually in a
manufacturing setting. It provides management with the necessary tools and
information for planning and controlling activities. Thus, the primary role of a
cost accountant is to determine the inventory cost for financial reporting,
planning, and control purposes.
Budgeting – Budgeting provides a detailed collection and reporting of the
expenditures and revenues involved in a business or company operations.
This branch of private accounting tracks the financial details of the firm,
including the money taken in and the money spent by the company and the
staff. It also assists the management in quantifying goals concerning revenue,
cost of sales or services, and operating expenses.
Accounting information system – Accounting information system collects and
processes transaction data. It also disseminates information to interested
parties. It involves the designing of both manual and computerized data
processing systems.
Tax Accounting – It deals with the preparation, analysis, and presentation of
various tax returns and tax payments. It also involves tax planning for the
business to ensure smooth functioning of their finances. This is similar to the
tax services done in public accounting.
Internal auditing – This branch of private accounting reviews the business
operations to check if they are complying with management policies. It also
evaluates the efficiency of business operations.

Government Accounting

Government accounting is a system used in government offices to record and report

financial transactions. It is the systematic process of collecting, recording,
classifying, summarizing, and interpreting the financial transactions relating to the
revenues and expenditures of government offices. Government accounting reveals
how public funds have been generated and utilized. It is employed in both national
and local governments.

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
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Module 1: Introduction CRT
to Accounting
CPAs are needed in the government, including government owned and controlled
corporations (GOCCs). He or she could be a provincial accountant, a Commission on
Audit (COA) auditor to various government agencies, a Bureau of Internal Reveneu
(BIR) examiner to local and national businesses, a budget officer of the Department
of Budget and Management (DBM), or a bank examiner of Bangko Sentral ng
Pilipinas (BSP). The possible career paths in government accounting are:

Entry-level positions – State Accounting Examiner, National Bureau of

Investigation (NBI) Agent, Treasury Agent, Local Government Unit (LGU)
Accountant, Revenue Officer, Audit Examiner, Budget Officer, Financial
Services Specialist
Middle-level positions – State Accountant, Government Accountancy and Audit
Director, Financial Services Manager, Audit Services Manager, Senior Auditor
Advanced positions – National Treasurer, Vice president for Finance/CFO(for
GOCCs), Commissioner, Associate Commissioner, Assistant Commissioner
(COA, BIR, Bureau of Customs or BOC)

Accounting education
This branch of accounting is responsible for training future accountants. It engaged
in teaching accounting, financial management, taxation, and other related business
course. As per Commission on Higher Education (CHED) Memorandum Order (CMO)
No. 27, Series 2017, a CPA in accounting education should possess the educational
qualifications, professional experience, classroom teaching ability, computer literacy,
scholarly research productivity, and other attributes that are essential for the
successful conduct of a professional accounting program.
CPAs are encouraged to be part of the academe and become an integral force in
inspiring learners to pursue career in accounting. Accounting educators could be
teachers, administrators, or researchers. The possible career paths in accounting
education are:

Entry-level position – Junior Accounting Instructor

Middle-level positions – Senior Faculty, Accounting Department Chair
Advanced positions – Vice President for Academic Affairs, Dean

Accountants in Specialized Areas

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Module 1: Introduction CRT
to Accounting
As a result of economic, industrial, and technological advancements, there are other
specialized fields in accounting that an accountant may engage into. Some of them
are:

Forensic Accounting – Forensic accountants provide the detective work needed

to investigate and examine evidence of white-collar financial crimes such as
stealing and fraud. They often act as expert witnesses in legal proceeding and
prepare evidence to be presented in court.
Information Technology Services – Businesses often seek individuals who can
design and implement customized software systems. CPAs who possess
strong skills in information technolody can work with e-commerce ventures
and consult with others to determine which decisions are the most financially
and technologically sound for a company.
Environmental Accounting – CPAs involved in environmental accounting
determine how companies can be both profitable and environmentally
responsible. They do environmental complance audits and set up preventive
systems to ensure compliance and avoild future environmental-related claims
or disputes.
Internal Accounting – International accountants are knowledgeable in
international trade rules and regulations, international mergers, government
regulations, tax laws, and overseas transactions. CPAs who work in this area
often travel abroad and can speak and understand different languages.

Activity #1: Essay

Document No. 001-2020
Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
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Module 1: Introduction CRT
to Accounting
 1. What branch of accounting do you want to focus on and why?

Quiz #1 Direction: Read each questions and circle the letter of the correct
answer. Choose the ONE best answer.
1. Which branch of accounting that review whether the financial statements are
presented fairly and in compliance with accounting standards?
a.Auditing (external)
b.Auditing (internal)
c.Managerial Accounting
d.Accounting Research
2. Which branch of accounting is primarily concerned with reporting about the
spending of government funds?
a.Financial Accounting
b.Managerial Accounting
c.Government Accounting
d.Cost Accounting
3. A branch of accounting that report on the total cost of materials and labor used in
the production.
a.Tax Accounting
b.Cost Accounting
c.Financial Accounting
d.Accounting Research

4. Conducting lectures on accounting topics.

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
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Module 1: Introduction CRT
to Accounting
 a. Accounting Education
b. Accounting Research
c. Managerial Accounting
d. Financial Accounting
5. Develop standards to address a new business set up.
a. Accounting Education
b. Accounting Research
c. Managerial Accounting
d. Financial Accounting
6. Keanna, Toni, and Harold are accountants in a large multinational corporation.
They prepare various Management Information reports such as Budgets, Projected
Cash Flow Statements, Cost-Volume-Profit Analysis reports, Break-Even-Point
calculation for the different department heads, the Vice-Presidents, the president,
and the CEO to consider. Which branch of accounting is being talked about in this
scenario? 5pts
a. Auditing
b. Cost Accounting
c. Financial Accounting
d. Management Accounting
7. Krystel is an accountant who assisting clients and companies with their financial
and income tax statements. She studied tax laws and is up-to-date with tax issues.
Which branch of accounting doesshe fall under? 5pts
a. Auditing
b. Cost accounting
c. Financial Accounting
d. Tax accounting

Good Job on finishing Module 1.2!

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
Management 1 Jocelyn F. Española, LPT Page 15
Module 1: Introduction CRT
to Accounting
How do you feel about it? Check the box that describes what you feel about this
lesson.

It was OKAY. I It was HARD. I

might need to have several
It was EASY! review some questions.
parts.

A teacher also learns a lot from their students.

Let me hear your thoughts. You can write your comments, suggestions, questions,
or feedback in this paper.

KEEP IN TOUCH!
If you have Questions and Clarifications.You may reach me through my
Gmail: espanolajocelyn8.7@gmail.com
Facebook messenger: jocelyn.espanola.39
contact#: 0951 695 5806

Referrence:
Document No. 001-2020
Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
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Module 1: Introduction CRT
to Accounting
 Rabo, Tugas, and Salendez. “Introduction to Accounting.” In Fundamentals of
Accountancy, Business and Management 1. Quezon City:Vibal Group, Inc.
2019.
Rabo, Tugas, and Salendez. “Branches of Accounting.” In Fundamentals of
Accountancy, Business and Management 1. Quezon City:Vibal Group, Inc.
2019.
Rabo, Tugas, and Salendez. “Users of Accounting.” In Fundamentals of
Accountancy, Business and Management 1. Quezon City:Vibal Group, Inc.
2019.

Photo Credits:
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806160

Document No. 001-2020

Fundamental of Date Developed: August 08, 2020
Accountancy, Date Revised:
Business and Developed by: Issued by:
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Module 1: Introduction CRT
to Accounting