APPROVAL SHEET

This thesis, titled ASSESSMENT ON THE ACCOUNTING SYSTEM OF

BAKERIES IN BATANGAS CITY prepared and submitted by Angelika B.
Cariñgal, Klarisse E. Cuyog, and Reuvy Kate R. Endaya in partial fulfillment of the
requirements for the degree Bachelor of Science in Accountancy, has been
examined and is recommended for acceptance for oral examination.

JENNIFER M. PEREZ, CPA, MBA

Adviser

Approved by the Committee on Oral Examination with a grade of ______

PANEL OF EXAMINERS

MA. CONCEPCION P. MANALO, CPA, MBA

Chairperson

REALIZA M. MAME, Ph.D. EUNIZE V. ESCALONA, CPA, MBA

Member Member

Accepted and approved in partial fulfillment of the requirements for the

degree Bachelor of Science in Accountancy.

_________________
Date BENDALYN M. LANDICHO, Ph.D., AFBE
Dean, CABEIHM
 ACKNOWLEDGEMENT

The researchers wish to express their sincerest appreciation and profound

gratitude to the people who contributed to complete this paper and who made this

possible even to their simplest yet beneficial way of help. The researchers are

indebted to the following individuals for all the forms of help they’ve offered to

enrich this study:

To Batangas State University, who imparted quality education and grateful

wisdom through the works of the masters in the past.

To Dr. Bendalyn M. Landicho, Dean of CABEIHM, who generously shared

her wisdom to the researchers for the improvement of their study.

To Mrs. Jennifer M. Perez, their thesis adviser, who supervised and gave

advises and criticism during the preparation and completion of their study.

To their panelists, Mrs. Ma. Concepcion P. Manalo, Ms. Eunize V.

Escalona, and Mrs. Realiza M. Mame, for their kindness, understanding, support,

and suggestions they gave to fulfill the study.

To the analytical ideas of Mrs. Realiza M. Mame, their statistician, who

provided accurate results in the data given by the researchers and also to Mr.

Angelo Panilagan, their grammarian, who carefully revised this research paper.

To the librarians and the staffs of Batangas State University, De La Salle

University, Far Eastern University, National Library of the Philippines, Provincial

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Library of Batangas City, who allowed the researchers to utilize and to avail the

needed materials in the accomplishment of this study.

To the BPLO department and to the local government of Batangas City, who

provided the data needed to undertake the study.

To the researchers’ family, who supported them morally and financially

while fulfilling the study.

And above all, to the Almighty God, who blessed them with wisdom,

knowledge, strength, courage, guidance and hope that made them believe that this

paper would be valuable to them and to the readers.

Angelika

Klarisse

Reuvy

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 TABLE OF CONTENTS

Title Page

TITLE PAGE …………………………………………….………………………… i

APPROVAL SHEET …………………………………….……………………….. ii
ACKNOWLEDGEMENT………………………….……………………………….iii
TABLE OF CONTENTS ………………………………..………………...………v
LISTOF TABLES………………………………………………………………….vii
LIST OF FIGURES……………………………………….………………………..ix
ABSTRACT………………………………………………..………………………..x

CHAPTER

I. THE PROBLEM
Introduction ……………………………………………………....................1
Background of the Study ………………………………...…...………..…. 3
Statement of the Problem …………………………………….…………... 4
Theoretical Framework ………………………………….…….………..…. 4
Conceptual Framework……………………………….……….….……….. 9
Scope and Limitations of the Study ………………….…………..…...… 10
Significance of the Study …………………………...……...…..………... 11
Definition of Terms …………………………………….…….…..……….. 13

II. REVIEW OF LITERATURE

Conceptual Literature ……………………….…………………….…….. 15
Research Literature …………………………..…..………..……………. 27
Synthesis ……………………………………..……..……….…………… 36

III. RESEARCH METHODOLOGY

Research Design…………………….…………..…………………….…. 39
Respondents of the Study ………………….…….……….………..…... 40
Data Gathering Instrument …………….……….……………….…........ 40
Data Gathering Procedure.…………………………..…………............. 43
Statistical Treatment of Data ……….………………..…...…….………. 45

IV. PRESENTATION, ANALYSIS, AND REPRESENTATION

OF DATA
Business Profile of the Bakeries………………………….…….………..46
Assessment of the Accounting System of Bakeries……………………51
Comparison of Means……………………………………………………..67
Issues and concerns experienced by the bakeries
Relative to accounting system………………………………………..74

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V. SUMMARY, FINDINGS, CONCLUSIONS,
AND RECOMMENDATIONS
Summary…………………………………………………….……….…...79
Findings…………………………………………………………………...80
Conclusions…………………….……………………………….……..….82
Recommendations………………………………………………..….…..83

BIBLIOGRAPHY………………………………………………………………85

APPENDICES

CURRICULUM VITAE

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 LIST OF TABLES

Table No. Title Page

1 Likert Scale……………………………………………………………44

2 Distribution of Bakeries in Terms of

Form of Business Ownership………………………………...46

3 Distribution of Bakeries in Terms

of Number of Years in Operations……………………………49

4 Distribution of Bakeries in Terms of

Average Monthly………………………………………………..50

5 Assessment of the Respondents on the

Accounting System of Bakeries in Terms of
Expenditure Cycle…………………………………………...…51

6 Assessment of the Respondents on the Accounting

System of Bakeries in Terms of Conversion…………………56

7 Assessment of the Respondents on the Accounting

System of Bakeries in Terms of Revenue Cycle……………..61

8 Overall Assessment on Accounting System of Bakeries

in Batangas City…………………………………………………65

9 Comparison on the Accounting System of Bakeries in Terms

of Form of Business Ownership……………………………….67

10 Comparison on the Accounting System of Bakeries

in Terms of Number of Years in Operation…………………..69

11 Comparison on the Accounting System of Bakeries in Terms

of Average Monthly Income…………………………………….72

12 Issues and Concerns Experienced by Bakeries Relative to

Accounting……………………………………………………….75

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 LIST OF FIGURES

Figure No. Title Page

1 Relationship of Transaction Cycles………………………………8

2 Conceptual Framework……………………………………………9

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 ABSTRACT

The central point of this study was to assess accounting system of bakeries

in Batangas City with regards to transaction cycles. Specially, the study aims to

know the business profile of the bakeries in terms of forms of business

organization, number of years in operation and average monthly income to assess

the accounting system of bakeries. It also aims to know how the respondents’

responses be compared and to determine what issues and concerns experienced

by the respondents relative to accounting system. Lastly, to develop an accounting

system manual for bakeries. In addition, percentage and weighted mean was used

as the statistical tools in the study.

For the understanding of the objectives, the researchers used descriptive

method which usually made some type of the comparison, contrast, correlation

and sometimes, in carefully planned and orchestrated descriptive research, cause

and effect relationship. Researchers sought to know the respondents’ level of

effectiveness with regards to the expenditure cycle, conversion cycle and revenue

cycle. The respondents of the study were the owner of 76 bakeries in Batangas

City who were capable and competent to answer the questions. A self-formulated

questionnaire was the primary tool used to gather and collect the necessary data

for the study. Findings revealed that majority of the respondents were sole

proprietor; and were operating 5 years and below; most of the bakeries have an

average monthly income of Php 20 000 and below. Among the three variables

based on its computed mean, revenue cycle got the highest composite mean of

3.34; conversion got the lowest composite mean of 2.97. Results also revealed

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that the respondents had different responses based on the foregoing findings and

conclusions. The researchers developed an accounting system manual for

bakeries to enhance their perception in the maximization of usage of accounting

system in their business. This would help the bakeries to operate more efficiently

and generate more reliable information in decision making.