THE ACCOUNTING CYCLE

I. INTRODUCTION

A. Definition
B. Objective of Accounting Cycle

II. STEPS IN ACCOUNTING CYCLE

A. Analyzing Transactions
B. Journalizing
C. Posting to the Ledger
D. Trial Balance
E. Adjusting Entries
F. Financial Statements
G. Closing Entries

III. CONCLUSION
THE ACCOUNTING CYCLE

ACCOUNTING is a process of series of activities that begins with transactions and ends with the closing
of books. Because this process is repeated each reporting period, it is referred to as the "Accounting Cycle". It is
a technical business function responsible for the recording, reporting, and analyzing financial information. The
sequence of six steps in the processing of financial transactions pertaining to the accounting period. These steps
are: (1) analyzing the transactions as they occur, (2) recording them in the journals, (3) posting debits and credits
from journal entries to the general ledger, (4) preparing a Trial Balance, (5) making adjustments, (6) preparing
financial statements, and (7) closing the temporary accounts.

The accounting process starts by identifying the transactions or other recognizable events, and it
includes preparing the transaction's source documents. In analyzing the transactions and events, one actually
classifies these transactions by identifying the accounts that are affected and whether those accounts are to be
debited or credited. This step involves quantifying the transactions in monetary terms. After this step follows the
recording of the transactions by making entries in their appropriate journal, such as sales journal, purchase
journal, cash receipt or disbursement journal, or the general journal. Such entries are made in chronological
order. Then the journal entries made are posted to the ledger accounts. After posting all the entries to the
ledger comes the preparation of the Trial Balance to make sure that debits and credits are equal. The Trial
Balance is the listing of all the ledger accounts, with debits in the left column and credits in the right column. It is
important for the Trial Balance to be "in-balance", otherwise, if there is any discrepancy between total debits and
total credits, and then you have to look for mathematical errors, posting errors, and recording errors. After
making sure that there are no more committed errors in the previous steps is the recording of journal entries for
adjustments. Adjustments are necessary for accrued and deferred accounts, and also with estimated amounts.
The adjusting journal entries are posted to the general ledger. Once the necessary adjustments are made, then
the Financial Statements are ready to be prepared. The Financial Statements includes the Income Statement,
Balance Sheet or the Financial Position, Comprehensive Income Statement, Cash Flow Statement, and the
Statement of Changes in Equity. It is then followed by preparing the closing journal entries that close temporary
accounts, such as revenue, expenses, gains, and losses. These accounts are closed to the income summary
account, from which the balance is transferred to retained earnings or capital. The closing journal entries are
posted to their respective ledger accounts which results to a zero balance of those temporary accounts.

Nearly all companies create end-of-year financial reports, and a new set of books is begun or opened
each year. Depending on the nature of the company and its size, financial reports can be prepared at much
more frequent intervals. The SEC (Securities and Exchange Commission) requires all companies to file financial
reports on both quarterly and yearly basis.

THE MECHANISM OF STAPLER

 I. INTRODUCTION

A. Definition
B. Characteristics

II. PARTS OF STAPLER AND ITS FUNCTIONS

A. Head
B. Base
C. Magazine
D. Hangar
E. Pin
F. Springs
G. Anvil

III. HOW STAPLER WORKS

IV. CONCLUSION

THE MECHANISM OF STAPLER

 A STAPLER is a simple mechanism that staples your pages and documents together at your
enjoyment. It is a small hand-operated device that keeps pages or documents safely and securely
together. It is a modern, smarter, and more efficient way to stick things together. It is indeed without a
doubt that stapler is one of the most useful tools we have today.

A stapler works by using force to push a staple through the paper, then secure the pages
together. It can be used for locking pages of a document together, or for tacking, when the stapler is
opened up and used to staple items to a flat surface. There are eight significant parts that come
together to make this happen. First, the stapler itself is composed mainly of the head and the base.
Connected to the head is the magazine, which holds the staples. The head is connected to the base by
a hangar, which is soldered in place. The pin at the back of the stapler allows the head to swing up and
down to load staples or in some models open up completely for use in tacking items. Inside there are
the springs that have two purposes. One spring pushes the staples down the magazine to reload the
stapler. The other works to pull the stapler head back up after it has stapled a document. On the base,
there is an anvil which is a metal plate that the staple is forced into that ultimately makes the bend in
the staple that secures the pages together.

The staples are loaded into the magazine so that the two points face towards the base of the
stapler. The spring creates tension that pushes staples toward the front of the stapler. When pressure is
applied to the head of the stapler, the magazine pushes down on the paper, and a metal plate in the
head of the stapler pushes the front staple down the magazine. The two points are forces into the
paper, piercing the pages until they come into contact with the anvil. There is a curves groove in the
anvil. The end of the staple is forced into this groove, where the pressure forces them to bend. They
bend inwards, creating a lock around the pages.

Tacking is used to stapling items into a flat surface, like walls or bulletin boards. A button is
pressed on the bottom of the stapler. This releases the magazine and the head of the stapler. The
stapler works as it would for regular stapling, forcing the staple out through the magazine. Only it is
not forced into the anvil. It pierces the paper and the surface, and pins them together, much like a
push pin or a thumbtack.

CLASSIFICATION OF ASSETS
 I. INTRODUCTION

A. Definition
B. Characteristics

II. CLASSIFICATION OF ASSETS

A. As to Physical Attributes:
1. Asset
2. Intangible Asset

B. As to Useful Life:
1. Current Asset
2. Non-current Asset

C. As to Nature and Use of Asset:

1. Owner-occupied/ Property Plant and Equipment
2. Inventory
3. Investment Property
4. Asset Held for Sale
5. Leased Assets

III. CONCLUSION

CLASSIFICATION OF ASSETS
 An ASSET is defined as resources controlled by the entity as a result of past event and from which future
economic benefit are expected to the flow to the entity. It refers to any resource owned by the entity in the
course of business to achieve its objectives. The resources of an entity are of different types, and to determine
the correct classification of asset one has to consider the physical attributes, useful life, nature and use of asset
classified basis of their physical attributes, assets can be of two types: (1) Tangibles assets, and (2) Intangible
assets. Tangible Assets are those assets that can be identified and also have physical existence or substance. For
example, office tables, building, and machinery are all examples of tangible assets that can be touched and
seen. Intangible Assets on the other hand are those non-monetary assets which can be distinguished separately
from other assets of the entity but do not have physical existence or substance. Examples to this type of assets
based on their physical attributes are goodwill, copyrights, patents and software.

Assets whether tangible or intangible are classified in two categories based on how long they will benefit
to the entity and they can be classified as either Current Assets and Non-current Assets. Current Assets are
those which provide future economic benefit for the period of one year or less. Usually this asset is consumed
within one year or their benefit is short-term. While the assets which provide future economic benefit for more
than one year or financial period are called Non-current Assets. As this asset has useful lives of more than one
year so their economic benefit is obtained in two or more financial years.

Considering the way assets are used can be classified in yet another way. They are classified as either
Owner-occupied or Property Plant and Equipment, Inventory, Investment Property, Assets Held for Sale or
Leased Assets. Owner-occupied or Property Plant and Equipment are those assets held for use in the production
process or provision of services to other. Inventories are those assets held to be sold in the ordinary course of
the business. Investment Properties are those owned or taken under finance lease and sub-leased under
operating lease to another party. It includes the assets held vacant to be leased out or those constructed with an
intention to be used as Investment Property. The assets where carrying amount will be recovered principally by
sale (not in the ordinary course of business) instead of use are called "Assets Held for Sale". Leased Assets are
assets given out by the entity under finance lease to another party or maybe those assets taken up by the entity
under operating lease from another party.

In reality things can go more complex that requires specific discussion in detail. In such cases there are
specific provisions of relevant standard. There are cases where transactions and events that require classification
and accounting treatment on case to case basis sometimes.

FINANCIAL ACCOUNTING VS. MANEGERIAL ACCOUNTING

I. INTRODUCTION
 A. Nature of Financial Accounting
1. Uses of Financial Accounting Information
2. Users of Financial Accounting Information

B. Nature of Managerial Accounting

3. Uses of Managerial Accounting Reports
4. Users of Managerial Accounting Reports

II. DIFFERENCES BETWERN FINANCIAL ACCOUNTING AND MANAGERIAL ACCOUNTING

A. Aggregation
B. Efficiency
C. Proven information
D. Reporting focus
E. Standards
F. Systems
G. Time period
H. Timing
I. Valuation

III. CONCLUSION

COMPARISON-CONTRAST:
OPPOSING PATTERN or BLOCK ORGANIZATION

FINANCIAL ACCOUNTING VS. MANEGERIAL ACCOUNTING

Financial and Management Accounting are both important tools for a business, but serve different purposes. A
business uses accounting to determine operational plans in the future, to review past performance and to check
current business functions. Management and Financial Accounting have different audiences, as investors are not
usually involved in the day-to-day operations of the business but are concerned about their investment,
whereas managers need information quickly to make daily decisions.

In general, Financial Accounting refers to the aggregation of accounting information into financial statements,
while Managerial Accounting refers to the internal process used to account for business transactions. Reports
provided by Financial Accounting are the results of the entire business while Managerial Accounting reports are
at a more detailed level, such as profits by products, product line, customer, and geographic region. Financial
Accounting reports on the profitability of a business, whereas Managerial Accounting reports specifically what is
causing problems and how to fix them. Financial Accounting requires that records be kept with considerable
precision, which is needed to prove the financial statements are correct. Managerial Accounting frequently deals
with estimates, rather than proven or verifiable facts. Financial Accounting is oriented toward the creation of
financial statements, which are distributed both within and outside of a company. Managerial Accounting is
more concerned with operational reports, which are only distributed within a company. Financial Accounting
must comply with various accounting standards, whereas Managerial Accounting does not have to comply with
any standards when information compiled for internal consumption.

Financial Accounting is concerned with the financial results that a business has already achieved, so it has a
historical orientation. Budgets and forecasts in Managerial Accounting are addressed and so can have a future
orientation. The issuance of financial statements are required following the end of an accounting period,
whereas special reports are issued more frequently in Managerial Accounting, since the information it provides
is of most relevance if managers can see it right away. In terms of valuation, proper valuation in Financial
Accounting is observed while on Managerial Accounting valuation is of no concern.

There have been arguments as to which between Financial Accounting and Managerial Accounting is more
important. However, it is somewhat pointless to argue on which is more important. Each has its own purpose in
the business environment.

COST ACCOUNTING AND THE TWO BASIC PRODUCT COSTING SYSTEMS

I. INTRODUCTION
 A. Definition
B. Objective of Cost Accounting
C. Uses of Cost Accounting Data

II. THE TWO COSTING SYSTEM

A. Job Order Costing

B. Process Costing

III. COMPARISON OF THE TWO COSTING SYSTEMS

A. Similarities
B. Differences

IV. CONCLUSION

COMPARISON-CONTRAST:
ALTERNATING or POINT BY POINT MANNER

COST ACCOUNTING AND THE TWO BASIC PROCESS COSTING SYSTEMS

Cost accounting provides the information used as a basis for determining product cost and aids management in
planning and controlling operations. Cost accounting information is both needed and used by both financial
and managerial accounting. Information provided by cost accounting is also useful in making a variety of
important marketing decisions such as determining the selling price of a product, meeting competition, bidding
on contracts, and analyzing profitability. In cost accounting, there are two basic product-costing systems,
namely: Job Order Costing, and Process Costing, and they are the two traditional basis approaches to product
cost accounting systems.

Job Order Costing is a system for allocating costs to group of unique products. It is applicable to the production
of customer specified products such as the manufacture of special machines. Process Costing on the other hand
is a system applicable to a continuous process of a production. The objective of the two systems is the same.
They both provide product unit cost information for pricing, cost control, inventory valuation, and income
statement preparation. End-of-period values for the Cost of Goods Sold, Work-in-process inventory, and
Finished Goods inventory accounts are computed using product unit cost.

Job Order Costing and Process Costing differ from each other based on the application and uses of these
costing approaches. Job Order Costing deals with unique jobs during a period of time while in process costing
homogeneous units pass through similar processes. In Job Costing, costs are accumulated for each job or batch
produced. In Process Costing, costs are accumulated by department for an accounting period. Process costing
has less detailed recordkeeping; hence, if a company was choosing between Job and Process Costing, it would
find that recordkeeping costs are lower under process costing. Process costing does not provide as much
information as job costing because records of the costs of each unit produced are not kept using a process
costing. As a general rule job systems are usually more costly than process systems.

Many manufacturing firms have production systems which are not suited for strictly Job Order Costing or
Process Costing, but instead require a costing system which incorporates both ideas. This blending of ideas is
known as hybrid costing. One good example for a hybrid costing is an Operation Costing often used in
repetitive manufacturing where finished products have common, as well as distinguishing characteristics.