ADAPTIVE TEACHING GUIDE

MET # 10
Lesson # 7

Business Transactions and Their Analysis as Applied to the Accounting Cycle

Prerequisite Content-knowledge:
 Basic understanding of accounting principles, familiarity with financial statements, and knowledge of the accounting
equation (Assets = Liabilities + Owner's Equity).
Prerequisite Skill:
 Ability to perform basic mathematical operations, critical thinking, and analytical skills.

Prerequisites Assessment: (Describe the type and content of the Prerequisite Assessment and Use a separate
sheet for the copy of a full-blown assessment.)
1. Which of the following is not part of the accounting equation?
a) Assets
b) Liabilities
c) Owner's Equity
d) Revenue
Answer: d) Revenue

2. What does the term "debit" mean in accounting?

a) Increase in assets or expenses
b) Decrease in liabilities or equity
c) Both a and b
d) None of the above
Answer: c) Both a and b

3. Which financial statement shows a company's financial position at a specific point in time?
a) Income Statement
b) Balance Sheet
c) Cash Flow Statement
d) Statement of Owner's Equity
Answer: b) Balance Sheet

4. What is the correct order of steps in the accounting cycle?

a) Journalize, post, trial balance, adjust, close
b) Journalize, trial balance, adjust, post, close
c) Post, journalize, trial balance, adjust, close
d) Trial balance, journalize, post, adjust, close
Answer: a) Journalize, post, trial balance, adjust, close

5. Which account type normally has a credit balance?

a) Assets
b) Expenses
c) Liabilities
d) Dividends
Answer: c) Liabilities

6. What is the primary purpose of the general journal?

 a) To record transactions in chronological order
b) To classify accounts
c) To prepare financial statements
d) To close temporary accounts
Answer: a) To record transactions in chronological order

7. If a company pays rent in advance, it is recorded as:

a) An expense
b) A liability
c) An asset
d) Revenue
Answer: c) An asset

8. Which of the following is not a real account?

a) Cash
b) Accounts Receivable
c) Sales
d) Equipment
Answer: c) Sales

9. The double-entry bookkeeping system requires that:

a) All transactions affect at least two accounts
b) Debits must always equal credits
c) Assets must always equal liabilities
d) Both a and b
Answer: d) Both a and b

10. What is the normal balance for the Owner's Drawing account?
a) Debit
b) Credit
c) Either debit or credit
d) None of the above
Answer: a) Debit

Pre-lesson Remediation Activity: (Describe the activities and Use a separate sheet for the copy of a full-blown
assessment.)

1. For Students with an Insufficient Level of Prerequisite Content-knowledge and/or Skill(s):

 Review basic accounting terms and concepts through flashcards and online
quizzes.
 Practice creating simple T-accounts and recording basic transactions.
 Watch video tutorials on the accounting equation and its components.

2. For Students with a Fairly Sufficient Level of Prerequisite Content-knowledge and/or Skill(s):
 Solve more complex accounting problems involving multiple accounts.
 Analyze simple financial statements to reinforce understanding of account
relationships.
 Create mind maps connecting various accounting concepts.
Introduction: Must include the following parts:

1. Time Allotment: 2weeks

2. the knowledge (RUA) the student is expected to gain from learning the topic/lesson

At the end of the lesson, the learners will be able to:

  - Remember the rules of debit and credit
 Understand how business transactions affect accounts
 Apply the rules of debit and credit to analyze common business transactions

3. Context where the student is going to apply their learning (In what PAA/EFAA and personal use?)
 Students will apply this knowledge in real-world business scenarios, financial analysis, and
further accounting studies. This forms the foundation for understanding how businesses
record and report financial information.

4. Overview of the Lesson

 This lesson focuses on analyzing business transactions using the rules of debit and credit.
Students will learn how to identify the accounts affected by various transactions and
determine whether they should be debited or credited. The lesson will include examples,
practice exercises, and problem-solving activities to reinforce understanding.

Student’s Experiential Learning: (Note: Use the Flexible Learning Activity Identified for the topic/lesson relative
to the General Enabling Teaching Strategy. Number of chunking of topics
will be dependent on the teacher’s plan.)

Chunk 1: Rules of Debit and Credit

Formative question: What are the basic rules of debit and credit for different types of
accounts?

Learning activity: "Debit and Credit Card Game"

 Students are divided into pairs.
 Each pair receives a deck of cards with account names and
transaction descriptions.
 Students take turns drawing a card and determining whether the
account should be debited or credited based on the transaction.
 Players earn points for correct answers and explain their reasoning to
their partner.
 The activity concludes with a class discussion on the patterns
observed and any challenging transactions.

Chunk 2: Analyzing Business Transactions

Formative question: How do we determine which accounts are affected by a business

transaction?

 Learning Activity: "Transaction Analysis Relay"

 The class is divided into teams of 4-5 students.
 Each team is given a set of 20 business transactions.
 Teams work together to analyze each transaction, identifying the
accounts affected and whether they should be debited or credited.
 Once a team completes their analysis, they "pass the baton" to the
 next team for verification.
 Teams discuss any discrepancies and correct their work.
 The activity ends with a class review of the most challenging
transactions

Synthesis
 Lead a class discussion on how journals and ledgers work together in the accounting
cycle. Create a flowchart on the board showing the relationship between different
books of account. At the end of the lesson, students will create a mind map or
concept chart that illustrates the relationships between different types of accounts, the
rules of debit and credit, and how they apply to various business transactions. This
visual representation will help reinforce the connections between the concepts
learned.

RUA of a Student’s Learning:

 Remember: Students will recall the rules of debit and credit for
different account types.
 Understand: Students will explain how business transactions affect
multiple accounts and why proper analysis is crucial for accurate
financial reporting.
 Apply: Students will analyze new business transactions, determining
the accounts affected and how to record them using debits and credits
Post-lesson Remediation Activity: (Describe the activity and use a separate sheet for the copy of a full-blown
activity.)

1. For students needing additional support

o Provide additional one-on-one tutoring sessions.

o Assign simplified practice problems focusing on basic transactions.
o Create a visual aid (e.g., a flowchart) to help students determine whether to
debit or credit an account
2. For students with a strong grasp of the content:
o Assign more complex, multi-step transactions to analyze.
o Challenge students to create their own business scenarios and analyze the
resulting transactions.
o Introduce the concept of journal entries and have students practice recording
their analyzed transactions in proper journal format.

Prepared by:

Villaluz I. Abualas, LPT

Checked by:

Kenneth A. Esto MA, LPT

SHS Principal