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    1 SFP

    Uploaded by

    Rocky Bassig
    The document discusses the statement of financial position (SFP), also known as the balance sheet. The SFP reports the financial condition of a business as of a specific date by listing assets, liabilities, and owner's equity. Assets are resources that provide future economic benefits, liabilities are obligations arising from past events, and owner's equity represents the owner's investment in the business. The SFP is organized with sections for current assets, long-term assets, current liabilities, long-term liabilities, and owner's equity. It can be presented in either an account form with assets on the left and liabilities/equity on the right, or a report form with assets above and liabilities/equity below.

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    1 SFP

    Uploaded by

    Rocky Bassig
    55 views29 pages
    The document discusses the statement of financial position (SFP), also known as the balance sheet. The SFP reports the financial condition of a business as of a specific date by listing assets, liabilities, and owner's equity. Assets are resources that provide future economic benefits, liabilities are obligations arising from past events, and owner's equity represents the owner's investment in the business. The SFP is organized with sections for current assets, long-term assets, current liabilities, long-term liabilities, and owner's equity. It can be presented in either an account form with assets on the left and liabilities/equity on the right, or a report form with assets above and liabilities/equity below.

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    1.SFP

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    The document discusses the statement of financial position (SFP), also known as the balance sheet. The SFP reports the financial condition of a business as of a specific date by listing assets, liabilities, and owner's equity. Assets are resources that provide future economic benefits, liabilities are obligations arising from past events, and owner's equity represents the owner's investment in the business. The SFP is organized with sections for current assets, long-term assets, current liabilities, long-term liabilities, and owner's equity. It can be presented in either an account form with assets on the left and liabilities/equity on the right, or a report form with assets above and liabilities/equity below.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    55 views29 pages

    1 SFP

    Uploaded by

    Rocky Bassig
    The document discusses the statement of financial position (SFP), also known as the balance sheet. The SFP reports the financial condition of a business as of a specific date by listing assets, liabilities, and owner's equity. Assets are resources that provide future economic benefits, liabilities are obligations arising from past events, and owner's equity represents the owner's investment in the business. The SFP is organized with sections for current assets, long-term assets, current liabilities, long-term liabilities, and owner's equity. It can be presented in either an account form with assets on the left and liabilities/equity on the right, or a report form with assets above and liabilities/equity below.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 29

    STATEMENT OF

    FINANCIAL POSITION
    STATEMENT OF FINANCIAL POSITION
    The statement of financial position (SFP) is
    a statement that gives the financial condition of a
    business as of a given date. The SFP is another
    name for the balance sheet. It reports the permanent
    accounts as of the end of accounting period.
    01
    ELEMENTS OF
    FINANCIAL
    POSITION
    ELEMENTS OF STATEMENT OF
    FINANCIAL POSITION
    1. Assets are resources controlled by the enterprise
    as a result of past events and from which future
    economic benefits are expected to flow to the
    enterprise.
    ELEMENTS OF STATEMENT OF
    FINANCIAL POSITION
    2. Liability are present obligations of the enterprise
    arising from past events. The settlement of which is
    expected to result in an outflow of resources from the
    enterprise embodying economic benefits.
    ELEMENTS OF STATEMENT OF
    FINANCIAL POSITION
    3. Owner’s Equity refers to the investment or equity
    of the owner in the business.
    02
    FORMAT FOR
    STATEMENT
    OF FINANCIAL
    POSITION
    FORMAT FOR STATEMENT OF
    FINANCIAL POSITION
    A. The Heading
    1. Name of the Business
    2. Title of the Report
    3. Date of the Report (specific date)
    B. The Asset Section
    C. The Liabilities Section
    D. The Owner’s Equity Section
    03
    CLASSIFYING
    ASSETS AND
    LIABILITIES
    CLASSIFYING ASSETS AND LIABILITIES
    1. Current Asset
    Current assets will be converted to cash, sold,
    or used up bring during the next 12 months or within
    the business’ operating cycle if the cycle is longer
    than a year.
    CLASSIFYING ASSETS AND LIABILITIES
    2. Long-Term Asset
    Long-term assets are all assets other than
    current assets. One category of long-term assets is
    plant assets (also called fixed assets or property,
    plant, and equipment).
    CLASSIFYING ASSETS AND LIABILITIES
    CLASSIFYING ASSETS AND LIABILITIES
    3. Current Liabilities
    Current liabilities must be paid with cash or with
    goods and services within a year or within the
    entity’s operating cycle if cycle is longer than a year.
    CLASSIFYING ASSETS AND LIABILITIES
    4. Long-Term Liabilities
    All liabilities that are not current are classified
    as long-term liabilities. Many notes payable are
    long-term.
    CLASSIFYING ASSETS AND LIABILITIES
    04
    CLASSIFIED
    BALANCE
    SHEET
    CLASSIFIED BALANCE SHEET
    There are two balance sheet forms, namely –
    report form and account form.
    1. Account Form lists the assets at the left and the
    liabilities and the equity at the right.
    2. Report Form lists the assets at the top and the
    liabilities and owner’s equity below.
    Account Form
    Report Form
    05
    POST-CLOSING
    TRIAL BALANCE
    POST- CLOSING TRIAL BALANCE
    Notice that the accounts and amounts in the
    post- closing trial balance is the same as those in
    the statement of financial position.
    POST- CLOSING TRIAL BALANCE
    THANK YOU!
    ACTIVITY ON
    STATEMENT OF
    FINANCIAL POSITION
    ACTIVITY: STATEMENT OF FINANCIAL
    POSITION
    Sasha Consulting showed an improperly
    arranged adjusted trial balance as of December 31,
    2020. You are requested to prepare a Statement of
    Financial Position in both account form and report
    form.
    26,880

    76,880

    Account Form
    26,880

    76,880

    ₱319,900

    Report Form
    THANK YOU!

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