📘 Non-Fiction Basic accounting book

[juls91]

hello po. sino dito meron reference for accounting book. like basic accounting sana applicable for SHS. need lang for reference

 

[zaxcal]

In the Senior High School (SHS) curriculum under the ABM (Accountancy, Business, and Management) strand—specifically in Fundamentals of Accountancy, Business, and Management 1 (FABM 1)—accounting principles are governed by Generally Accepted Accounting Principles (GAAP) and Philippine Financial Reporting Standards (PFRS).

Core Accounting Principles​

1. Business Entity Principle
   The business is treated as a separate and distinct entity from its owner(s). Personal transactions of the owner (like buying personal groceries) must never be recorded in the business books.
2. Going Concern Principle
   Assumes that the business will continue to operate indefinitely unless there is evidence to the contrary. Because of this, assets are valued based on their long-term usefulness rather than immediate liquidation value.
3. Monetary Unit Principle
   Transactions are recorded only if they can be E×ρréššed in terms of money (e.g., Philippine Peso for local entities). Non-monetary factors, such as employee morale or customer satisfaction, are excluded.
4. Time Period / Periodicity Principle
   The life of a business is divided into equal, specific time intervals (e.g., monthly, quarterly, or annually) to report performance through regular financial statements.
5. Accrual Accounting Principle
   Revenues are recognized when earned (regardless of when cash is received), and expenses are recognized when incurred (regardless of when cash is ρáíd).
6. Matching Principle
   Expenses must be recorded in the exact same accounting period as the revenues they helped generate.
7. Historical Cost Principle
   Assets are initially recorded at their original purchase/acquisition cost, not at current market value or estimated future value.
8. Full Disclosure Principle
   Financial statements must disclose all relevant and material financial information needed for users to make informed decisions.
9. Materiality Principle
   Minor or insignificant amounts that do not impact decision-making can be handled with simpler accounting methods (e.g., recording a ₱100 trash bin as an expense right away instead of an asset to depreciate over 5 years).
10. Conservatism / Prudence
    When choosing between two acceptable solutions, accountants choose the option that will result in lower net income or asset value to avoid overstating financial health.

The Fundamental Accounting Equation​

The entire double-entry bookkeeping system relies on this core balance:
$$\text{Assets} = \text{Liabilities} + \text{Owner's Equity}$$

• Assets: Resources owned by the business (e.g., Cash, Accounts Receivable, Equipment).
• Liabilities: Debts or obligations owed to outside parties (e.g., Accounts Payable, Loans Payable).
• Owner’s Equity: The residual interest or claim of the owner in the assets of the business after deducting all liabilities.

The Basic Accounting Cycle​

1. Transaction Analysis: Identifying business documents (receipts, invoices).
2. Journalizing: Recording transactions chronologically in the General Journal (Debits & Credits).
3. Posting: Transferring journal entries to the General Ledger (T-accounts).
4. Trial Balance: Verifying that total debits equal total credits.
5. Adjusting Entries: Applying the accrual concept for unrecorded revenues and expenses.
6. Financial Statements: Preparing the Balance Sheet, Income Statement, Statement of Changes in Equity, and Statement of Cash Flows.
7. Closing Entries: Resetting temporary accounts (revenues and expenses) to zero for the next period.

For visual learners needing a quick review of these concepts in Taglish with practice problems, this breakdown on You do not have permission to view the full content of this post. Log in or register now. provides structured explanations tailored to the FABM 1 SHS syllabus.
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[juls91]

thanks dito boss. pero yung need ko talaga is book mismo kahit ebook lang oks na ako dun hehe. anyway thanks dito

 

[Motoristang Makata]

Salamat d2 bossing