TECHNOPRENEURSHIP II

EMOTIONAL INTELLIGENCE
HUMANMETRICS (Jung Typology Test)

         Extraverted Sensing Feeling Perceiving (Extraverted Sensing with Introverted Feeling)

     THE PERFORMER. That is the description of an ESFP. As an ESFP, your primary mode of living is focused externally, where you take things in via your five senses in a literal, concrete fashion. Your secondary mode is internal, where you deal with things according to how you feel about them, or how they fit with your personal value system. 

      According to http://www.personalitypage.com/ESFP.html, ESFPs live in the world of people possibilties. They love people and new experiences. They are lively and fun, and enjoy being the center of attention. They live in the here-and-now, and relish excitement and drama in their lives.

           
     ESFPs have very strong inter-personal skills, and may find themselves in the role of the peacemaker frequently. Since they make decisions by using their personal values, they are usually very sympathetic and concerned for other people's well-being. They're usually quite generous and warm. They are very observant about other people, and seem to sense what is wrong with someone before others might, responding warmly with a solution to a practical need. They might not be the best advice-givers in the world, because they dislike theory and future-planning, but they are great for giving practical care.

     The dominant function of ESFPs is concerned with the reality that is perceived through the senses. This type's prime directive is to examine the tangible through taste, touch, sight, feeling and hearing. ESFPs' need for new experiences surely results from this function. Feeling gives focus to the collected information, producing the amiable nature of this type. As perceivers, ESFPs do not linger on moral concerns unless it is in service of a Greater Good and/or a unifying cause.

     For the ESFP, the entire world is a stage. Like me, I love to be the center of attention and perform for people. I usually putting on a show for others to entertain them and make them happy. I also enjoy stimulating other people's senses. I love nothing more than for life to be a continual party, in which they play the role of the fun-loving host.

     An ESFP person like me has a tremendous love for life, and knows how to have fun. I like to bring others along on their fun-rides, and are typically a lot of fun to be with. I'm flexible, adaptable, genuinely interested in people, and sometimes kind-hearted (LOL :D). ESFPs have a special ability to get a lot of fun out of life, but need to watch out for the pitfalls associated with living entirely in the moment.

ADVERSITY QUOTIENT
AUTISM-SPECTRUM QUOTIENT (WIRED AQ TEST)

     AQ is the most scientifically robust and widely used method in the world for measuring and strengthening human resilience. (http://www.peaklearning.com/about_aq.php) Adversity Quotient (AQ) is a measure of how you respond to adversity (change and challenges). It provides the tools for improving how you respond and thus overall professional effectiveness. Autism-Spectrum Quotient, or AQ, is used to measure of the extent of autistic traits in adults.


     Dr. Paul Stoltz defines Adversity Quotient as “the capacity of the person to deal with the adversities of his life. As such, it is the science of human resilience.” 


     By understanding the concept of AQ we can better understand how we and others react to challenge and adversity in all aspects of our lives. In fact, how people respond to adversity is a strong indicator of ability to succeed in many endeavors. 


     I scored 22 in this test. This is a score for an average women. Everytime I face new situations or new challenges, I sometimes feel uncomfortable but challenged. I love to explore new things and new adventures. This obstacles can be turned to an opportunity to grow as a person.


     There are three types of people:

1. Quitter: abandons their aspirations because it is too difficult.
2. Camper: Grow weary of the hike and find a comfortable plateau on which to hide from adversity.
3. Climber: possibility thinkers who never allow obstacles to get in their way of achieving their aspirations. They never forget the power of the journey over the destination. Embrace the challenge.

     Definition of AQ - CORE

• Control
• How much control do you perceive to have over the adverse event?
• Greater perceived control leads to a more empowered and proactive approach.
• Origin and Ownership
• Who or what was the origin of the adversity?
• To what degree do I own the outcomes?
• Remorse, blame and critisism are compelling motivators – but only in measured doses
•  Accountability – to what degree am I responsible?
• Reality:
• How far will the outcomes affect the other areas of my life?
• Overestimating the reality of the consequences is detrimental
• Endurance:
• How long will the adversity last?
•  How long will the cause of the adversity last?
•  Labelling yourself as “stupid” or as a “loser” is detrimental and is difficult to reverse

     Techniques For Overcoming Low AQ

• Listen to your thought responses (are they high or low AQ?)
• Explore all origins and ownership of the result
• What are the possible origins of the adversity?
• What part was my fault?
•  What specifically could I have done better?
• What aspects should I own?
• What aspects shouldn’t I own?
• Analyse the evidence
• What evidence is there that I have no control?
• What evidence is there that the adversity will affect the other areas of my life?
• What other evidence is there that there will be prolonged consequences?
• Do Something
• What additional information do I need?
• What could I do to gain some control?
• What could I do to limit the reach of the adversity?
• What could I de to limit how long the adversity endures in its current state?
• Create a visual image of a silly gesture and a silly sound (make it loud and powerful). Each time adversity strikes, think of this image and sound. It alerts you to anayse the situation and react appropriately

     

Review: PIRATES OF THE SILICON VALLEY

The movie “Pirates of the Silicon Valley” portrayed the beginning of Apple and Microsoft Corporation. The film showed how the ideas of extraordinary individuals, Steve jobs of Apple and Bill Gates of Microsoft, changed the computer world. It also showed not only the development of the two computer companies, Apple and Microsoft, but also the rivalry between Steve Jobs and Bill Gates. The film also emphasized the enormous computer companies, Xerox and IBM. On the other hand, as the thought of the personal computer surface, the time of both Steve Jobs and Bill Gates begin.

The film was entitled “Pirates of the Silicon Valley” since the main characters stole ideas from one another. It presented the tricky world of business. Microsoft acquired the DOS from someone else. Bill Gates sold IBM on the idea of using Microsoft's new operating system DOS as the operating system for all IBM machines. Apple stole the concept of Graphical User Interface (GUI) from Xerox and Microsoft developed Windows from Apple software. Silicon Valley is located in Northern California where the computer development of the 1980’s and 1990’s hasted.

The movie also showcased the personal life of the main characters as well as their negative personalities. Steve Jobs refused to accept that he is the biological father of a young girl named Lisa and Bill Gates rode a bulldozer as if it was just a normal car. It also presented the obstacles and hindrances in the development of their companies and how both managed to overcome them.

From nameless individuals that gigantic computer companies ignore, Steve Job who made Apple shocked the world by its different versions of personal computer and Bill Gates was now known as the richest man in the world because of his creativity and wild ideas. Microsoft appeared out of nowhere to conquer the world, basically because Microsoft software has something that the other companies like IBM lacked.

The film also has several historical inaccuracies because the length of a film is short, the film attempted to over generalize the historical record in order to abridge the span of the film. For instance, Apple’s Graphical User Interfaced Lisa was appeared to be a remarkable success when in reality, it was a commercial failure. But because of this, by presenting it as a success made it easier to justify why Microsoft headed by Bill Gates gained interest in Apple Company. Many other events are unrevealed in the film and were emphasized in a less depth.

ACCOUNTING: Case Study II

Discuss the two forms of trial balances. Give the cons and pros of the two.

            Trial balance is referred as the total of the accounts on the debit and credit side. It is a summary of balances of all accounts recorded in the ledger.

           

            Trial balance does not prove that transactions have been correctly analyzed and recorded in the proper account. This proves only one aspect of the ledger; that is the equity of debits and credits. This report summarizes the debit and credit entries of each account in the General Ledger.

            The trial balance has two forms. One is the trial balance of balances and the trial balance of totals. In the trial balance of balances, the listing of the debit and credit balances of each account in the ledger that are remaining open after footing has been done. While in the trial balance of totals, both the debit and credit entries of the General Ledger will appear in the listing including closed accounts (debit is equal to credit). The trial balance of totals is helpful in the reconstruction of accounts.

            The two forms of trial balance have advantages and disadvantages. The trial balance has the following advantages and objectives.

1. It ensures that the transactions recorded in the books of accounts have identical debit and credit amount.

2. The balance of each ledger account has been computed correctly.

3. The balance of each and every ledger account has been transferred accurately and on the correct side of the sheet on which trial balance has been prepared.

4. The debit and the credit columns of trial balance have been added up correctly.

5. Preparation of final accounts is not possible without preparing trial balance first.

6. Agreed trial balance is a prima facie evidence of the arithmetical accuracy of the accounting books maintained.

7. Errors which are revealed by preparing trial balance (listed below) are rectified even before the preparation of final accounts.

Also, it has disadvantages especially when errors and omission take place. Errors and omission are very common to occur because of the volume of works to be done which may result a trial balance to be still in balance or out of balance.

If the trial balance is not in balance, then an error has been made somewhere in the accounting process. The following is listing of common errors that would result in an unbalanced trial balance; this listing can be used to assist in isolating the cause of the imbalance.

1. Summation error for the debits and credits of the trial balance

2. Error transferring the ledger account balances to the trial balance columns  

          * Error in numeric value 
          * Error in transferring a debit or credit to the proper column
          * Omission of an account

3. Error in the calculation of a ledger account balance

4. Error in posting a journal entry to the ledger    

          * Error in numeric value   
          * Error in posting a debit or credit to the proper column 

5. Errors in journal entry 

          * Error in a numeric value 
          * Omission of part of a compound journal entry

What is posting? In what books of accounts this is being done?

            Posting to the ledger is considered as the second step of the accounting process. It is the process of transferring entries from the journal to the ledger. In accounting terms the word "post" means to record a transaction or adjustment to the correct accounts, assigning a debit to one account and an offsetting credit to another. To post is to summarize all journal entries and transfer them to the general ledger accounts. The action of recording a debit or credit in the general ledger is referred to as posting. The posting of a journal entry to the general ledger accounts is a purely mechanical process using information already in the journal entry and requiring no additional analysis. The posting is done in the General Ledger.

What is “cross-referencing” or “cross indexing”? Explain its importance.

            Cross-referencing or cross-indexing is the process wherein the ledger account number in the posting reference column (or folio) of the journal and the journal page number in the posting reference column (or folio) of the ledger account are positioned. With the use of cross-referencing or cross-indexing, the ledger account number and journal page number are used as cross-reference to easily locate and review the accounts.

What is footing? How is it accomplished in the General Ledger?

Footing is the final balance when adding the debits and credits on an accounting balance sheet. It is the summary of the debits (left side of any account) and credits (right side of any account) to obtain a new balance. Footings are commonly used in bookkeeping to determine final balances to be put on the financial statements. In footing the account, a well sharpened pencil should be used in writing the total of the amount and the account balance. If an account is debit balance (debit total is bigger than the credit total), the amount of difference is placed on the particular column of the debit side. If the account, on the other hand is credit balance (credit total is bigger than the debit total), the amount of difference is placed in the particular column of the credit side. If there is only one entry in any side of an account in the ledger, no footing is done and the entry is left as is. Footing is nearly the total of the column and if error is committed, it may be erased and corrected easily because pencil is being used. Footing is not considered an entry posted in the general ledger.

What is a Trial Balance?

Trial Balance is a statement of ledger account balances within the ledger. It is a list and total of all the debit and credit accounts for an entity for a given period – usually a month. It is also a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns.

What is the source of a Trial Balance?

            The sources of trial balance are the debit and credit entries of the accounts in the general ledger. In the trial balance of balances, the final balance of debit and credit amount (footing) of the accounts are considered and presented in the trial balance. While in the trial balance of totals, both the debit and credit entries of the general ledger will appear in the listing including closed accounts.

What is the purpose of a Trial Balance?

A trial balance is prepared to check the mathematical and arithmetic accuracy of accounting. Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system.

When is a Trial Balance prepared?

It is prepared at the end of a chosen period which may either be monthly, quarterly, half-yearly, or annually or as and when required.  A company prepares a trial balance periodically, usually at the end of every reporting period.

When a Trial Balance is said to be “forced balance”?

            A trial balance is considered as “forced balance” when a trial balance is forced to appear to be “in balance” even though it is actually “out of balance”. It is done by changing the amount or changing an account with the amount of the unlocated difference. This action is never permissible in the accounting practice and can be discovered through an audit or examination of books of accounts.

Enumerate some of the errors committed that will make a trial balance to be “out of balance”.

            A trial balance is considered to be “out of balance” due to some errors and omissions. If the trial balance is not in balance, then an error has been made somewhere in the accounting process. Some of the errors and omissions are listed below:

1.  The footing of the debit and credit columns of the trial balance is wrong; (error)

2.  An account with “open balance” in the General Ledger was not listed in the trial balance; (omission)

3.  The footing of the account balance in the General Ledger is wrong; (error)

4.  Posting the amount of an item to the wrong side of the account or ledger; (error)

5.  Omission in posting of either debit or credit entry in the journal; (omission)

6.  And the balance of an account is listed in the trial balance with a wrong amount, such as “transportation” of the amount or “sliding” of the amount or listing a different amount from the correct one.

What are the possible errors that when committed, the trial balance will still be “in balance”?

            A trial balance can be called as “in balance” but actually unbalanced due to some possible errors and omissions that are committed. Some of them are listed below:

1.  A transaction may not have been recorded in the journal; (omission)

2.  A journal entry may not have been posted in the ledger in its entirely; (omission)

3.  Posting a correct amount to a wrong account; (error)

4.  And wrong charging of account title in the journal entry and was carried to posting in the ledger. (error)

Differentiate a “sliding error” from that of a “transportation error”.

            A sliding error is committed when there is an error in placing the decimal point of a figure. Like for example, P 200.00 is inaccurately written as P 20.00 and P 55.00 as P 5.50. While the transportation error is committed when the order or arrangement of a figure is reversed, reorder or swapped.  Like for example, P 1234 is inaccurately written as P 1243.

Are omissions considered errors? Explain.

            Yes, omissions are considered as errors because when we commit errors, it will result to an unbalanced trial balance and it is an error if an account in the ledger was not listed in the trial balance. An omission refers to an act where accounts or transaction are excluded in the process and therefore an error occur.  

Differentiate “single ruling” from “double ruling”.

            Single ruling is done at the last account or account title of the trial balance wherein a single line is drawn after all the accounts and serves as its separation from the total of debit and credit. While in double ruling, a double line is drawn at the total that signifies that the debit and credit are equal.

How are the accounts in the Trial Balance arranged?

            The format of the trial balance is a two-column schedule. Key to preparing a trial balance is making sure that all the account balances are listed under the correct column.  The appropriate columns are as follows:

Assets = Debit balance
Liabilities = Credit balance
Expenses = Debit Balance
Equity = Credit balance
Revenue = Credit balance

CASES FOR CLASSROOM DISCUSSION

CASE A

            A newly hired bookkeeper of a certain company was in trouble. His trial balance was out of balance and he was looking for a ten-centavo amount of difference. When his supervisor learned that he was not able to locate the difference for a day, he was being told arrogantly that the company is losing because of this. While he was paid P200.00 a day, he was only looking for that ten-centavo difference in his trial balance.

            What he did later was to add that unlocated difference to one of the accounts, so then, the trial balance appeared to be “in balance”.

Questions:

a.)    What was he trying to do with the trial balance?

The newly hired bookkeeper tries to locate the ten-centavo amount of difference and make his trial balance “balanced” but the result is it appeared to be “in balance” and adds the unlocated difference to one of the accounts.

b.)   Do you think this error will be discovered? How? When? And who?

Yes, this error will definitely be discovered. Even though it’s just a ten-centavo, it is noticeable once the receipts, journal entries, t-accounts, general journal, general ledger and all other books of accounts are reviewed and verified by the company’s accountant and auditor.

CASE B

            A student in basic accounting was requested by his uncle to prepare a trial balance for his business because his bookkeeper got sick. The trial balance prepared by the student is presented below:

	Debit	Credit
Accounts Payable		P  30, 000
Accounts Receivable	P   10, 000
Building	100, 000
Capital		85, 000
Cash	20, 000
Drawing	5, 000
Salaries Expense	3, 000
Service Income		25, 000
Supplies Used	2, 000
	P 140, 000	P 140, 000

            The student told his uncle that once a trial balance is “balanced”, there is no error. In other words he can guarantee that his work is correct.

Questions:

a.)    Was the arrangement of the account correct?

No, the arrangement of the accounts is in incorrect order. The order of accounts is generally from asset, liabilities, owner’s equity, income to expenses. And each account titles are alphabetically arranged.

b.)   Do you agree that when a trial balance is ”in balance”, the work is presumably correct?

Maybe because a trial balance may still be “in balance” even though some errors and omissions are committed. And commonly, when we have the trial balance “in balance”, we identify it as correct if no errors are committed in the process of journalizing, posting and etc.

CASE C

            Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately would prevent the trial balance from balancing.

a)    The bookkeeper debited cash for P 700, 000 and credited salaries expense of P700 for payment of salaries.
b)    Cash collected on account was debited on cash account for P 500 and service income was credited for P 50.

Question:

What would you tell them? 

                        I will inform the two students that an error in an accounting process will absolutely affect and prevent the trial balance from balancing. Even a centavo may be a great difference if the process is not accurate. And also, in both transactions, they commit a sliding error wherein the decimal point was misplaced and the values were incorrectly written because the zeros were omitted.

GALLERY

ACCOUNTING: Case Study I

1. Explain the nature of accounting system.

    The purpose of the accounting system is to keep the track of transactions and recording revenue and expenses of the company. It helps in recording, analyzing and retrieving the financial data. On the basis of financial status and financial reports important decisions of the company are made. The basic purpose of accounting system is the identification of all the activities which may impact the companies financially. Moreover, accounting system also provides a proper way to the companies for the monitoring and handling financial data like all data is arranged in journal entries and ledger. This also increases the internal check on the organizations.

     The accounting system can be tailored to the needs of any individual, non-profit organization, small or large business. This course will concentrate on the needs of small business. A business is an economic entity created for the purpose of increasing the wealth of its owner or owners by generating profits from the provision of goods and/or services. A small business is one where all major decisions are the responsibility of one, two or a few people who are usually the owners. With the help of accounting, owners can take countless important decisions and make right decisions on the right time.

     An accounting system is a process whereby a specific output is produced by a given input. In an information accounting system, data is processed to provide information. The aim of an accounting system is to record the transaction data and then to process this data to provide information that is ultimately collected in the financial and management reports of the enterprise. There are two stages in the development of an accounting system, namely systems analysis and system design.

     In the system's design process the system is designed to comply with the specifications determined by systems analysis. A good accounting system must comply with at least the following fundamental requirements. The system must provide decision makers with timely and accurate information relevant to the responsibilities and requirements; the internal control measures must be adequate to ensure the protection of assets and the provision of reliable information and the system must be sufficiently flexible to accommodate changes in the volume of activities and in the operating procedures without requiring drastic modifications.

2. Differentiate account from T-account.

     Accounting records about events and transactions are recorded in accounts. An account is a record of financial transactions for an asset or individual, such as at a bank, brokerage, credit card company, or retail store. It is a formal record that represents, in words, money or other unit of measurement, certain resources, claims to such resources, transactions or other events that result in changes to those resources and claims. It refers to assets, liabilities, income, expenses, and equity, as represented by individual ledger pages to which debit and credit entries are chronologically posted to record changes in value.

     While T-account is the simplest form of an account, shaped like the letter T, in which increases and decreases in the account can be recorded. It is a visual aid used to represent an account in a general ledger. Its common use is in preparing adjusting entries (accruals and deferrals). It is an individual record of increases and decreases in a specific asset, liability, or owner’s equity item. It is consist of three parts: title of account, debit (left side) and credit (right side). It is referred as T-account because the alignment of these parts of an account resembles the letter T.

EXAMPLE OF T-ACCOUNT

3. State the basic rules of debit and credit.

     Debit and credit are two actions of opposing nature that are relevant to the process of accounting. An element (account) that is effected by an accounting transaction is either debited or credited (with an amount that is reflected in the transaction) depending on the nature of the account and the rule applicable to it.

Debits are a component of an accounting transaction that will increase assets and decrease liabilities and equity. Credits are a component of an accounting transaction that will increase liabilities and equity and decrease assets. We can put this into an easier format:

     • Credits increase liabilities and equity; credits decrease assets.

     • Debits decrease liabilities and equity; debits increase assets.

     Left-hand side is known as debit and right hand side is known as credit. The essential rules are, for every debit there must be an equal credit and of course, for every credit there must be an equal debit. Debits and credits must balance always (Debit = Credit).

4. What is the importance of a double-entry accounting?

     Double-entry accounting is a standard accounting method that involves each transaction being recorded in at least two accounts, resulting in a debit to one or more accounts and a credit to one or more accounts. Double entry accounting is important since it provides a method for quickly checking accuracy because the sum of all accounts with debit balances should equal the sum of all credit balance accounts. It is a method of record-keeping that lets you track just where your money comes from and where it goes. Using double-entry means that money is never gained nor lost it is always transferred from somewhere (a source account) to somewhere else (a destination account). Double entry accounting is a "must have" feature in financial software for small businesses. There are two important rules about double-entry recording system:

     • Assets = Claims (Liabilities and Owner's Equity)

     • Total Debits = Total Credits

5. Discuss the role of accounting records.

     Accounting records are manual or computerized records of assets and liabilities, monetary transactions, various journals, ledgers, and supporting documents such as agreements, checks, invoices, vouchers, which an organization is required to keep for certain number of years. Accounts are used to record transactions evidenced by documents and to express such transactions. All of the documentation and books involved in the preparation of financial statements or records relevant to audits and financial reviews.

     These are records of a firm's financial position that reflect any changes in that position. Examples include such things as source documents, accounting journals, general ledgers, along with the financial statements like the income statement, balance sheet, statement of retained earnings, and statement of cash flows.