Fundamentals of ABM 1

This is an introductory course in accounting, business, and management data analysis that will develop students’ appreciation of accounting as a language of business and an understanding of basic accounting concepts and principles that will help them analyze business transactions.

Content Standards

The learners demonstrate an understanding of…

• the definition, nature, function, and history of accounting
• cite specific examples in which accounting is used in making business decisions
• the external and internal users of financial information
  • solve exercises and problems on the identification of users of information, type of decisions to be made, and type of information needed by the users
  • cite users of financial information and identify whether they are external or internal users
• accounting concepts and principles and identify generally accepted accounting principles
• the accounting equation and solve problems applying the accounting equation
• the five major accounts, namely,
  • assets
  • liabilities
  • capital
  • income
  • expenses

• define, identify, and classify accounts according to the five major types
• the two major types of books of accounts, namely, journal and ledger
• differentiate a journal from a ledger and identify the types of journals and ledgers
• the business transactions and their analysis to include definition and nature of business transactions, types of source or business documents, and the rules of debits and credits
• identify business and nonbusiness transactions, enumerate the types of business documents, recite the rules of debit and credit, and apply these to simple cases
• the accounting cycle of a service business and identify business and nonbusiness transactions, enumerate the types of business documents, recite the rules of debit and credit, and apply these in simple cases
• the accounting cycle of a merchandising business to include the following:
  • Journalizing of transactions using the general and special journals, namely: sales journal, purchase journal, cash receipts journal and cash payments journal
  • Posting to the ledger, namely: general and subsidiary ledgers prepare journal entries, post to the ledger, prepare the trial balance, worksheet, adjusting entries and complete the   accounting cycle of a merchandising business.
  • Preparation of trial balance
  • Adjusting entries to include prepayments, accrual and deferral
  • Worksheet preparation, and
  • Completing the accounting cycle of a merchandising business