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Unit I

Introduction to Accounting

Overview

|Background |The evolution of accounting is attributed to the social and economic needs of society. As business and society |
| |become more complex, accounting develops new concepts, methods and techniques to meet the ever changing and |
| |increasing needs for financial information. Without the necessary information furnished by accounting, many |
| |complex social programs and economic development may never have been realized. |
| |Information, in any market economy, assists decision-makers in making wise choices regarding the use of limited |
| |resources under their control. When decision-makers are able to make well-informed decisions, resources are |
| |allocated in a manner that better meets the needs and goals of companies within the given market. |
| |The Philippines, being a developing country, would need a great deal of reliable and timely information to compete|
| |in the global market and accounting will play an important role in this prevailing competitive global structure of|
| |the economy. Companies use accounting information to evaluate the business situations around the world. It is |
| |therefore necessary that future accountants, businessmen, entrepreneurs and economists must be trained properly on|
| |how to generate and interpret this financial information. |

|Purpose |The purpose of Unit I “Introduction to Accounting and Basic Accounting Principles” is to provide students with |
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