Accountancy or Accounting is said to be the “language of business”. It is the art of communicating in terms of financial aspects in the business world. It communicates in the form of financial statements that shows the income, assets, expenses, liabilities and capital of a certain business. It is a branch of mathematical science that shows the reason behind the excellent success of a company, as well as its downfall or failure. Accountancy qualifies as a profession because they have their own body of language and they also use terminology peculiar to the profession. The demand for accounting services has increased with the increase in number, size and intricacy of businesses all over the world. Accountant is the…show more content… It can also be used when one is decreasing the quantity of liabilities, capital and revenues (Ballada, 2008).
Liabilities. These are debts owed by an individual or business. Personal liabilities may include unpaid charge account balances, as well as amounts owed on a home and/or automobile loan. Business liabilities may include similar items: amounts owed or accounts payable (Kravitz, 1999).
Payroll. Its data includes the hours worked, sales or piecework, taxes, insurance, and union dues to be withheld, and employee identification number from time sheets and other record (Mercado & Pefianco,1987).
CHAPTER II
REVIEW OF LITERATURE
Historical Background
Unlike most other modern professions, accounting has a history that is usually discussed in terms of one seminal event – the invention and dissemination of the double entry bookkeeping processes. But a view of accounting history that begins with Luca Pacioli’s contributions overlooks a long evolution of accounting systems in ancient and medieval times. The history of accounting started as early as 2000 B.C. in the cities of Babylonian, Greece, Egypt and in 3500 B.C in Assyria. The first record before contains only the record of taxes collected by the tax collector which was imposed by kings. The keeping of records started when the pyramids were being constructed it is required to record the materials, labor and overhead (Manuel,
