Note: Kung sasagot kayo ng pre-assessment at post assessment, sa inline comment po kayo sumagot para ma-check ko. I also provided statements para do'n po kayo makapag-tanong. Good luck and enjoy learning!

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PRE-ASSESSMENT

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1. Is the process of identifying, recording and communicating business transactions and events expressed in monetary terms.

a. Accounting
b. Partnership
c. Business Transaction
d. None of the above

2. Owned by two or more people.

a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperatives

3. It is owned by only one person.

a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperatives

4. Duly registered association of persons with a common bond of interest.

a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperatives

5. A form of business organized as a separate legal entity under the corporation law with ownership divided into transferable shares of stock.

a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperatives

For 6-10, identify what type of business each businesses presented.

a. Service   b. Manufacturing   c. Merchandising

6. Shoe factory

7. Accounting firms

8. Law firms

9. Book stores

10. Sari-sari store

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1.0 What is Accounting?

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Accounting is a process of identifying, recording and communicating economic events of an organization to interested users. (Weygandt, J. et. al)

According to M-W, accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.

Accounting is also considered the language of business.

Sa Accounting and as an accountant, trabaho mong i-record ang mga transactions na nagawa ng isang business sa isang araw.

For example, si Mr. Yoo ay magaling manggupit ng buhok. Dahil magaling siyang maggupit ng buhok, napagdesisyonan niyang magsimula ng negosyo. Nag-invest siya ng Php100,000 sa business niya. Ang unang transaction na i-re-record mo ay ang investment ni Mr. Yoo. The next day, bumili siya ng mga supplies at equipment para sa kaniyang business. Ang susunod mong i-re-record ay ang pagbili niya ng supplies at equipment.

Accounting also helps you track your daily transactions. Dahil nag-re-record ka everyday, hindi ka mahihirapan na i-track ang mga kakailanganin mo. I-a-analyze ng accounting if you gain something in your business or not.

[ If you have any questions, clarifications, any violent reactions, please comment here ]

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1.1 Forms of Business Organizations

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• Sole Proprietorship

- A form of business that is owned by only one person. This is the most common form of business.

For example, napag-desisyonan mo na magtinda ng cupcake. May Php20,000 kang savings kaya ginamit mo 'yon para makapag-simula ka. Ikaw lang ang nag-iisang nag-invest sa negosyo mo.

Advantageous ang sole proprietorship dahil sa 'yo lang lahat ng kita at ikaw lahat ang magde-desisyon sa negosyo mo.

• Partnership

- A form of business that is owned by two or more persons. Profits are divided among partners depending on their agreement.

For example, gustong-gusto mo talagang mag-negosyo ng isang boutique ngunit kulang ang pera na na-ipon mo. You asked your friend, Anna, kung pwede ba siyang mag-invest sa negosyo mo at maging parte ng ownership ng negosyo. Sumang-ayon si Anna kaya gumawa kayo ng agreement kung magkano ang matatanggap na profit depende kung magkano ang in-invest ninyo.

Ang advantage kapag partnership ay mataas ang capital ng negosyo. At ang disadvantage nito ay ang profits are divided kung ilang partners ang meron sa negosyo.

• Corporation

- a form of business that is owned by more than 10 persons. A form of business organized as a separate legal entity under the corporation law with ownership divided into transferable shares of stock.

For example, napagdesisyonan ninyo ni Anna, ang partner mo sa negosyo, na palakihin ang boutique ngunit hindi pa sapat ang capital ninyo ni Anna para palakihin ng boutique kaya nagtanong kayo sa iba ninyong kaibigan para mag-invest sa negosyo.

• Cooperative

- is a duly registered association pf persons with common bond of interest, voluntarily joining together to achieve their social, economic and cultural needs.

For example, sumali ka ng isang club sa inyong eskwelahan kung saan napagdesisyonan ng lahat ng myembro na magtayo ng isang negosyo. Ang iba mong kaklase ay tinuruan na gumawa ng notebook, hand-made bracelets, etc. bilang proyekto ng grupo. Ang ginawa ninyo ay ibebenta sa isang kompanya at pagkatapos ng taon, ang profits ay i-di-distribute sa bawat myembro ng negosyo.

[ If you have any questions and clarifications, kindly comment here ]

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1.2 Types of Business

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• Service Business

- this type of business offers professional skills, advice and consultations.

Examples: accounting and law firms, repair shops, barber shops and beauty salons

• Merchandising Business

- this type of business buys at wholesale then later sells the products at retail. Merchandising business is also known as "buy and sell."

Example: sari-sari stores, book stores, hardware stores

• Manufacturing Business

- this type of business buys raw materials and uses them in making new products.

Example: bakery, shoe manufacturing businesses

[ If you have any questions, comment it here ]

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POST ASSESSMENT

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1. In your own words, what is accounting?

For numbers 2-6, write T if the statement is correct and F if it's not.

2. Manufacturing Business buys at wholesale and later sells the products at retail.

3. Barber shops, beauty parlors and repair shops are examples of a service business.

4. Book stores, sari-sari stores and shoe factory are example of merchandising business.

5. Partnership is a form of business owned by two or more persons.

6. Sole proprietorship is a form of business owned by only one person.

For numbers 7-10, enumerate the forms of business (in any order).

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If you learned a thing or two, share it here and to others! 'Til next session, dear learners!

- MJ