Fundamentals of Accountancy Business and management is about accounting topics. It serves as the foundation in accounting where the topics are elaborated and discussed thorougly.
MODULE 1
FUNDAMENTALS
OF
ACCOUNTANCY, BUSINESS
AND
MANAGEMENT
2
Lesson
1 THE STATEMENT OF FINANCIAL POSITION
DEFINITION OF SFP
, Statement of Financial Position (SFP) is a statement that shows the “financial
condition” of the enterprise as of a given date. A balance sheet is of two forms: “Account
Form and the “Report Form”.
The Account Form of a balance sheet is patterned after the Accounting Equation, Assets=
Liabilities + Owner’s Equity at the right side. The three accounting elements are arranged in
horizontal order. This form of a Balance sheet is used when there are plenty of accounts
involved.
The “Report Form” of a balance sheet, assets are shown first and followed by liabilities
and owner’s equity in a vertical order. This form of s balance sheet is used when there are
only few accounts involved.
WHAT DO YOU EXPECT TO LEARN?
Content Standard:
The learners demonstrate understanding of the:
1. account titles under assets, liabilities, and capital
2. accounts of the Statement of the Financial Position namely:
cash, receivables, inventories, prepaid expenses, property, plant
and equipment, payables, accrued expenses, unearned income,
long-term liabilities and capital that will equip him/her in the
preparation of the SFP using the report form and account form.
Performance Standard:
The learners should be able to:
1. solve exercises and problems that require preparation of an SFP
for a single proprietorship with proper classification of accounts
as current and noncurrent using the report form and the account
form.
Objectives:
After the lesson, the learners should be able to:
1. define SFP (Statement of Financial Position);
2. identify and explain the basic elements of the SFP and describe each of them;
3. classify the elements of SFP into current and non-current items;
4. solve problems under SFP.
PRELIMINARY ACTIVITY
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller sarahjeanjamil23. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
