FABM 1

• Assets = Liabilities + Equity is the main equation for accounting
• Accounting is the process of identifying, recording, and communicating economic events of an organization to interested users.
• Identifying involves selecting economic events that are relevant to a business transaction.
• The economic events of an organization are referred to as transactions.
• Recording involves keeping chronological diary of events that are measured in pesos.
• The diary are the journals and ledgers.
• Accounting is a systematic recording of the financial transactions and the presentation of the related information to appropriate persons.
• Process


  The method of performing any specific job step-by-step according to the targets or objectives.
• Art refers to the way of something is performed.
• The 5 Basic Features of Accounting

  • Service Activity
  • Process
  • Both an Art and Discipline
  • Deals with Financial Information and Transactions
  • Information System