FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

Subject Teacher: Edgar G. Mejia, MMPA, MBA

DACILLO, ALEXA B.
Name of Learner: ________________________________________________________
Grade Level: __________
11 Section: ___________
ABM Date: ___________________
March 08, 2022

LEARNING ACTIVITY SHEET # 3

History of Accounting

Background Information for Learners:

Accounting is as old as the civilization itself. It has evolved in response to various social and
economic needs of men. Accounting started as a simple recording of repetitive exchanges. The
history of accounting is often seen as indistinguishable from the history of finance and
business.

Learning Competency with code:

The learner narrates the history/origin of accounting (ABM_FABM11-IIIa-4)

Procedures:
Activity I
I. Multiple Choice: Choose the correct answer from the options given below. Encircle the letter
of the best answer.
1. Who is considered the father of accounting?
a. Queen Victoria
O b. Luca Pacioli
c. Augustus
d. Suetonius
2. Which order of events portray the history of accounting?
o a. Early development in Mesopotamia-Development in Roman Empire
Dissemination of double-entry bookkeeping in the fourteenth century Italy 
Signing of charter by Queen Victoria-Formation of Accounting Standard such PAS
and PFRS.
b. Development of Roman Empire  Early Development in Mesopotamia-
Dissemination of double-entry bookkeeping in the fourteenth century Italy-Signing
of Charter by
Queen Victoria  Formation of accounting standards such as PAS and PFRS
c. Early development in Mesopotamia-Development in Roman Empire 
Dissemination of double-entry bookkeeping in the fourteenth century Italy 
Signing of charter by Queen Victoria
d. Early development in Mesopotamia  Development in Roman Empire-Signing of
Charter by Queen Victoria  Dissemination of double-entry bookkeeping in the
fourteenth century Italy  Formation of accounting standards such as PAS and
PFRS.
3. The accounting history covers long period. Which of the following statements regarding
the history of accounting is NOT correct?
o
a. PAS and PFRS are the standards followed by the accountants in performing their
profession in the present day.
b. It is believed that accounting was being used as early as the days of the ancient
Mesopotamia.
c. During the fourteenth century Italy, the use of single-entry bookkeeping became
widespread due to the work of Luca Paciolli.
d. The modern profession of chartered accountants originated from Scotland.

4. The double entry system was laid by_______________?

a. Emperor Augustus
o
b. Luca Pacioli
c. Queen Victoria
d. None of the above’

5. The dissemination of double entry was introduced in______________.

a. The reign of Emperor Augustus
b. Cradle civilization
o
c. Fourteenth Century Italy
d. Nineteenth Century

Activity II:
Directions: Read the events (evolution of accounting) below. They are out of order. Write the
number into sequence into the blank space to place the events in order.

_____French
3 revolution-The thorough study of accounting and development of accounting
theory began during this period. Social upheavals affecting government, finances, laws,
customs and business had greatly influenced the development of accounting.
____
1 The Cradle of Civilization-Around 3600 B.C., record-keeping was already common
from Mesopotamia, China and India to Central and South America. The oldest evidence of
this practice was the “clay tablet” of Mesopotamia which dealt with commercial transactions
at the time such as listing of accounts receivable and accounts payable.
2 14th Century-Double-Entry Bookkeeping The most important event in accounting
_____
history is generally considered to be the dissemination of double entry bookkeeping by Luca
Pacioli (‘The Father of Accounting’) in 14th century Italy. Pacioli was much revered in his
day, and was a friend and contemporary of Leonardo da Vinci. The Italians of the 14th to
16th centuries are widely acknowledged as the fathers of modern accounting and were the
first to commonly use Arabic numerals, rather than Roman, for tracking business accounts.
Luca Pacioli wrote Summa de Arithmetica, the first book published that contained a detailed
chapter on double-entry bookkeeping.
4 The Industrial Revolution (1760-1830) Mass production and the great importance of
_____
fixed assets were given attention during this period.
6 The Development of Modern Accounting Standards and Commerce- The
_____
accounting profession in the 20th century developed around state requirements for financial
statement audits. Beyond the industry's self-regulation, the government also sets accounting
standards, through laws and agencies such as the Securities and Exchange Commission
(SEC). As economies worldwide continued to globalize, accounting regulatory bodies
required accounting practitioners to observe International Accounting Standards. This is to
assure transparency and reliability, and to obtain greater confidence on accounting
information used by global investors.

5 19th Century – The Beginnings of Modern Accounting in Europe and America.

_____
The modern, formal accounting profession emerged in Scotland in 1854 when Queen Victoria
granted a Royal Charter to the Institute of Accountants in Glasgow, creating the profession of
the Chartered Accountant (CA). In the late 1800s, chartered accountants from Scotland and
Britain came to the U.S. to audit British investments. Some of these accountants stayed in the
U.S., setting up accounting practices and becoming the origins of several U.S. accounting
firms. The first national U.S. accounting society was set up in 1887. The American Association
of Public Accountants was the forerunner to the current American Institute of Certified Public
Accountants (AICPA)

Activity III:
Directions: Identify which era in the history of accounting being illustrated. Write the letter of
the correct answer before each number.
A. The Cradle Civilization D. The Industrial Revolution
B. 14th Century E. 19th Century
C. French Revolution F. 20th Century

D
_____1. Mass production and the great importance of fixed assets were given attention
during this period.
_____2.
C The thorough study of accounting and development of accounting theory began during
this period. Social upheavals affecting government, finances, laws, customs and business had
greatly influenced the development of accounting.
A
_____3. Record-keeping was already common from Mesopotamia, China and India to Central
and South America. The oldest evidence of this practice was the “clay tablet” of Mesopotamia
which dealt with commercial transactions at the time such as listing of accounts receivable and
accounts payable.
_____4.
B The most important event in accounting history is generally considered to be the
dissemination of double entry bookkeeping by Luca Pacioli (‘The Father of Accounting’)
E
_____5. In this period rapid changes in accounting practice and reports were made.
Accounting standards to be observed by accounting professionals were promulgated. Notable
practices such as mergers, acquisitions and growth of multinational corporations were
developed.
E
_____6. The modern, formal accounting profession emerged in Scotland in 1854 when Queen
Victoria granted a Royal Charter to the Institute of Accountants in Glasgow, creating the
profession of the Chartered Accountant (CA).
____7.
F The accounting profession developed around state requirements for financial statement
audits. Beyond the industry's self-regulation, the government also sets accounting standards,
through laws and agencies such as the Securities and Exchange Commission (SEC). As
economies worldwide continued to globalize, accounting regulatory bodies required
accounting practitioners to observe International Accounting Standards.
B Double entry in bookkeeping was developed.
____8.
 F
____9. Tablet is used as receipt.
___10.
A It is this era that the accountant is called the eye and the ear of the king.

Activity IV
Give at least three examples of how earlier periods made use of the accounting process.
1. The people relied on primitive accounting methods to record the growth of crops and herds.
______________________________________________________________
2. The words "debit" and "credit" in accounting goes back to the days of single-entry bookkeeping,
______________________________________________________________
Accounting as an ad-hoc ordering system devised by the merchant
3. ______________________________________________________________

Activity V
Direction: Answer what is being ask.
Why do historians, consider the dissemination of the double-entry bookkeeping of Luca Pacioli
in the fourteenth century the most important event in the accounting history?
___________________________________________________________________________
Most of the major events that defined the rise of double entry bookkeeping and the creation of contemporary
accounting may be explained by looking at the historical evolution of the double entry system. It will improve potential
___________________________________________________________________________
accountants' and others' abilities to make better informed decisions. It enables us to establish a relationship between
___________________________________________________________________________
past accounting practices, what the practice is now, and what it ought to be Double entry system of accounting is one
___________________________________________________________________________
which reports___________________________________________________________________________
business transactions in such a way that each entry is recorded twice – first as a debit and second as a
credit. This system was originally developed to reduce mistakes associated with bookkeeping because at the end of t
the day, it is expected that the sum of the debit side should be equal to that of the
Guide Questions:
credit side otherwise, something must have gone wrong
1. How did the accounting develop? somewhere
2. What was the most important event in the accounting history?
3. What are the events in the past that lead to the development of accounting?

Rubrics for Scoring

Points
10 There is a clear, well focused idea that stands out and supported by detailed
information
8 Main idea is clear but supporting information is general
6 Main idea is somewhat clear, but there is a need for more supporting
information
4 The main idea is not clear. There is a seemingly random collection of
information

Reflection: What was the most challenging or least interesting about this
activity?
_______________________________________________________________
the most challenging in this topic was in the activity 2 because I don't have idea
_______________________________________________________________
about the history of accounting but I am thankful to answer activity 2 because
it give me knowledge and idea. the most least interesting activity in this answer
_______________________________________________________________
shit was none.
_______________________________________________________________

1. Fundamentals of Accountancy, Business, and Management by: Joselito

Florendo
2. https://drive.google.com/file/d/0B869YF0KEHr7dW04Xzd3UWRNZW8/vie
w
 Answer Key: FUNDAMENTALS OF ACCOUNTANCY, BUSINESS
AND MANAGEMENT 1
Subject Teacher: Edgar G. Mejia, MMPA, MBA

Name of Learner: ________________________________________________________

DACILLO, ALEXA B.
Grade Level: __________
11 ABM
Section: ___________ Date: ___________________
03-08-2022

LEARNING ACTIVITY SHEET # 4

External and Internal Users of Financial Information

Background Information for Learners:

Accounting is called the language of business communicates accounting information

to help many types of users. The user’s need for financial information depend upon the type
of decisions to be made.
Financial reports supply the information to the internal and external users in order for
them to make decisions connected to the business.

Learning Competency with code:

At the end of the activity the students should be able to:
1. Define external users and gives examples (ABM_FABM11-IIIa-7)
2. Define internal users and give examples (ABM_FABM11-IIIa-8)

Procedure:

Activity I
Directions: Classify each of the following as either external user (E), or internal user (I).
E
__________1. Creditor
I
__________2.Employees
E
__________3. Academe
__________4.Government
E
__________5.Stockholder
I
__________6.Customer/Client
E
__________7.Potential
E Investor
__________8.
I Management
__________9.General
I Public
__________10.Owners
I
Activity II
Directions: Choose the correct answer from the options given below. Circle the letter of the
best answer.
1. Which of the following is NOT considered internal user of accounting information?
a. Owners of the business
 O
b. Suppliers
c. Senior partners of audit firm
d. Field workers

2. Raymond is a professor in accountancy in the BS Accountancy program of the

University of Sto. Tomas. He is also a stockholder of Northwing Co. In the point of
view of Northwing Co., Raymond is an
a. Internal User
b. External user
o
c. a & b
d. none of the above
3. Which of the following is NOT considered an external user of the accounting
information?
a. BIR
b. Customers
c. Production supervisor
d. A student of accountancy
4. The government is also an interested outside party that analyzes a company’s financial
statements. Which of the following is NOT performed by the government?
a. The government encourages or prohibits certain business activities depending on
their effect on the economy.
b. The government examines financial statements to help companies in formulate
business decisions
oc. The government assesses the taxes payable by companies through the analysis of
financial statements.
d. The government is a regulatory body that oversees all business.
5. Management consists of the following
a. Top management, supervisors, field workers, board of directors
O
b. Board of directors, supervisors, top management, laborers
c. Top management, board of directors, middle managers, supervisors
d. Owners, top management, middle managers, supervisors, laborers
6. The group of users of accounting information invested resources to the company with
the hope of earning acceptable returns.
a. Government
Ob. Potential investors
c. Creditors
d. Owners or Stockholders
7. Which of the following does NOT fall under the category of customer?
Oa. Francis, a loyal gamer in Angel Computer shop.
b. Jeff, a client of Optical Shop
c. Jose, a regular purchase of soft drink in Lyn’s Sari-Sari Store.
d. Juan, an individual collecting monthly payment from Jaja Co.
8. Which of the following information in a company’s financial statements concerns
creditors?
a. Amount of profit
b. Borrowings of a company
c. Assets of a company
O
d. All of the above
 9. In what aspect do creditors and potential investors differ?
a. Creditors are wary of the riskiness of a company
b. Creditors are exposed to more risk than investors
Oc. Wealthy individuals can only invest not lend to a company.
d. Creditors receive fived amount of fee in their loans to the business.
10. Why do costumers look at the companies’ financial statements?
Oa. To help members of academe to gather data for educational purpose
b. To decide whether or not they will lend resources to the company.
c. To see if it will be beneficial to build a long-term relationship with the company
d. To estimate potential returns if he or she plans to transact with company

Activity III

Directions: Search up, down, forward, backward, and on diagonal to find the hidden words.
Find the following words:
• Government
• Management
• Employees
• Costumers
• Banks
• Money
• Creditors
• Stockholders

WORD SEARCH

S J Q L M O V L T E T T
Y R U A R P A P U G N E
C R E C B C G J B E E M
M U J D A B F P M P M P
X F S D L G Y E J R N L
L W E T F O G L J M R O
N M I P O A H P E S E Y
E Q E M N M Y K U S V E
E A W A T J E E C U O E
Y R M N R K Y R N O G S
S R E N W O Z B S O T J
Activity IV

Directions: Supply the missing information.

Types of User Definition Example of Users Benefits from

Accounting
Information

Customers Main source of income 1.PATRONS, CLIENTS, Whether or not to

of businesses PEOPLE ACQUIRING build relationships
GOODS,
with businesses

Creditors Provides additional Banks, lending 2.

funds when the initial institution, Whether or not to lend
resource's to the business,
investment of the government try to see if the business is
owners is exhausted not very risky before
lending funds

3. An external user BIR Oversees business,

Government whose primary role is Check the accuracy
DOLE
to regulate, analyze of financial statements
financial statements to DTI
determine of taxes
payable

Management Employees that make Board of Directors, 4.

uses financial information in
decisions for the top management, making business decisions;
company middle-level manager, allows management to
supervisors identify problems
immediately and to
respond accordingly
Owners Existing investor of 5. Mainly concerned
the company; Founder of the company, with returns earned
concerned mostly owners, stockholders,
with profits of the partners, proprietors
company
 Employees Persons in the Laborers, Field 6.
company aside from workers, non- check if the business is
profitable enough to
managers and owners managerial employees provide compensation
or stockholders and other benefits

Activity V: Arrange & Identify

Directions: Arrange the jumbled words of the different users of financial

information in the box, after which identify each arranged word whether it is
internal (I) or external users of financial information. Write your answer on the
space provided.
1.NTEMRNEVGO 4.SUCMOTRES 7.KSNAB
2.RECSRTOID 5. AGENAMEMTN 8.MEEDCAA
3.LOPEMEEY 6.WORSEN 9.SRSDHOLAKCOT
10.RSIEPPLUS

1.___________________________________
GOVERNMENT
CREDITORS
2.___________________________________
3.__________________________________
EMPLOYEE
CUSTOMERS
4.__________________________________
5.__________________________________
MANAGEMENT
6.__________________________________
OWNERS
7.__________________________________
BANKS
ACADEME
8.__________________________________
STOCKHOLDERS
9.__________________________________
10._________________________________
SUPPLIERS

Activity V:
Directions: Answer what is being ask. Write your answer on the space provided.
1. Name the two broad categories of users of financial information and give three
examples each.
____________________________________________________________________
INTERNAL USERS, example; marketing managers, production, finance directions.
____________________________________________________________________
EXTERNAL USERS, example; customers, creditors, potential investors
__________________________________________
2. What kind of information do users need that can be answered by financial statements?
Financial statements are snapshots of a company's financial health that
____________________________________________________________________
provide information about its performance, operations, and cash flow.
____________________________________________________________________
____________________________________________________________________
Financial statements are important since they show a company's
____________________________________________________________________
revenue, expenses, profitability, and debt.

Guide Questions:
 1. Who are the external users?
2. Who are the internal users?
3. What are the benefits do external and internal users get from the financial information?

Rubrics for Scoring

Points
10 There is a clear, well focused idea that stands out and supported by detailed
information
8 Main idea is clear but supporting information is general
6 Main idea is somewhat clear. But there is a need for more supporting
information
4 The main idea is not clear. There is a seemingly random collection of
information

Reflection:
Write your brief description of your experiences by answering the following questions.
1. How do you find the activity?
____________________________________________________________________
I find the activity difficult because it like new challenges that we don't have ideas
____________________________________________________________________
about this topic. We don't have module to help us in answering this topic. Also,
even it is hard to answer I get some idea and knowledge.
____________________________________________________________________
________________________________
2. What did you like most about the activity, and why?
________________________________________________________________________
I like in this topic was the two broad categories of users of financial information, the
external and internal because it enlighten me about the financial information.
________________________________________________________________________
________________________________________________________________________
3. What was the most challenging about the activity?
It is challenging because we don't have module to guide us in answering this
____________________________________________________________________
activity.
____________________________________________________________________
____________________________________________________________________

Reference for learners:

1. Fundamentals of Accountancy, Business, and Management by: Joselito
Florendo
2. https://drive.google.com/file/d/0B869YF0KEHr7dW04Xzd3UWRNZW8/vi
ew