University of Cebu-Banilad Library

Includes bibliographical references and index.

Chapter 1 The statement of financial position -- Chapter 2 Statement of comprehensive income -- Chapter 3 Statement of changes in equity -- Chapter 4 Statment of cash flows -- Chapter 5 Financial statement analysis 1 -- Chapter 6 Financial statement analysis 2 -- Chapter 7 Business forms -- Chapter 8 Accounting books: journals and ledgers -- Chapter 9 The bank account -- Chapter 10 Income taxation.

"Thank you for using this worktext. This is already the Second Edition of Fundamentals of Accountancy, Business, and Management 2. "Funda-2" for short.

Over the past years, I have gone around the Philippines to help Accountancy, Business, and Management (ABM) teachers navigate how to teach accounting to senior high school students. I understand that they face a very daunting task of teaching accounting to young students.

Fundamentals of Accountancy, Business, and Management (FABM) has gotten the reputation of being a difficult subject. Many students fear this subject even before they open the first page of their worktext. Alas, fear is a barrier to both comprehension and appreciation.

To both teachers and students, I begin this book with a simple request. Calm your nerves, erase your fears, and open your mind.

Accounting is a subject founded on logic and sense. This worktext will guide you to understand the logic of accounting. It will provide frameworks and tools to help you learn accounting from a conceptual perspective I challenge the students to study beyond blindly memorizing formulas and mnemonics. While the conceptual approach may be the longer and harder route, I believe this will give the students a tremendous advantage when they face more complex topics in their collegiate accounting courses. Likewise, this will help them develop the skills needed in applying accounting concepts to simple business transactions.

This book is composed of three parts. The first part will build on the financial statements introduced in Fundamentals of Accountancy, Business, and Management 1. This time, the focus is on the elements of financial statements. What are the accounts that compose the Statement of Financial Position and the Statement of Comprehensive Income? In accounting, we cannot simply name an account and give it our own meaning. Accountants have agreed upon definitions and rules for the use of most account names. It is important to follow these rules for the readers and preparers of financial statements to understand each other. The generally accepted accounting principles in the Philippines are embodied in the Philippine Financial Reporting Standards.

The second part is about reading and using the financial statements to evaluate the operations and financial position of a company. Financial analysis is both backward and forward looking. A company's current performance may be benchmarked against industry, competitors, or even its own historical performance. More so, it can also be used as a jumping board of forecasts for the future.

The third part of this book is about the processes that begin with business forms that document business transactions and end in the preparation of the financial statements and income tax returns.

While computerized accounting software had gained popularity in recent years due to the cost affordability of both software and hardware, this book sheds light on the manual procedures to illustrate the accounting process. This is because the automated processes are rendered "invisible" in computerized accounting. As a result, the students may not be able to gain a full appreciation of the accounting process. However, the teachers are not precluded from introducing accounting software packages, such as Quickbooks, Peachtree, MYOB, or SAP Business One. Problems in Chapters 7 and 8 may be answered using any of these accounting software packages. Chapters 7-9 may be used together with the supplementary Cheeky Triplets Accounting Practice Set. The objective of the practice set is to give the students the experience of performing the accounting cycle from business forms to financial statements.

Each chapter begins with an Assignment for Research to highlight the relevance of the topic at hand. Jollibee Foods Corporations, a company with operations that are very familiar to majority of the students, illustrates the applications of accounting concepts in the business world. Also, the comprehensive and continuous case of Mira's Store, a neighborhood school and office supplies store, is used to guide the students in the application of accounting in a sole proprietorship. Finally, illustrations, end of chapter tests, and problem sets are provided to give the students practice materials to reinforce their understanding of the theories in each chapter.

How do you teach accounting to high school students? This was the main question in my mind when I started writing this book. It remains the biggest consideration as I try to make improvements in the second edition. I will be the first to admit that it is still a work in progress. I will appreciate your comments, particularly for the improvement of this book, as well as the accounting subject of the K to 12 program in general. Please send your emails to wecare@rexpublishing.com.ph and dani_abm2@ gmail.com. May all of you have as much fun teaching accounting as I did in writing this book." --Preface

Adult

Purchased Lopez, Edilyn College of Tourism Management Business / Management

Text in English