S.Y. 2022-2023
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
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
