Act1module1 (No Template)

WESTERN COLLEGES INC
NAIC, CAVITE
HIGH SCHOOL DEPARTMENT
SENIOR HIGH SCHOOL
l. PRELIMINARIES
Learning Area ACCOUNTANCY, BUSINESS AND MANAGEMENT

Quarter No: Module Number: 1 Duration:
1ST
One week
Week No. 1
Topic/s Fundamentals of Accountancy, Business and Management 2
Resource/s: Textbook: Fundamentals of Accountancy, Business and

Management 2 by Diwa
Reference/s
Online
Resources
Subject Mr. Alberto S. Miranda

Teacher:
Checked by:
Mr. Darniell C. Balbuena
ll. COMPETENCIES AND CORE VALUES
COURSE DESCRIPTION: The course deals with the preparation and analysis of
financial statements of a service business and merchandising business using
horizontal and vertical analyses and financial ratios. Knowledge and skills in the
analysis of financial statements will aid the future entrepreneurs in making sound
economic decisions.
CONTENT STANDARD:
The learners demonstrate an understanding of… account titles under the assets,
liabilities, and capital accounts of the Statement of 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 STANDARDS:
The learners shall be able to… 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
MOST ESSENTIAL LEARNING COMPETENCIES (MELC)

The learner…
identify the elements of the SFP and describe each of them Week 1
ABM_FABM12- Ia-b-1 prepare an SFP using the report form and the account form
with proper classification of items as current and noncurrent ABM_FABM12- Ia-b-
4
lll. INTRODUCTION
Introduction: hi! My future CPA Lawyer, increase (ups) and decrease (down) at
school are part of life for many young people. Today we face a “New Normal” in
learning to ensure your employment for senior high school graduates, according
to our Secretary Briones “ensure that no Filipino learner will be left behind in
terms of education as the country continues to grapple with the COVID-19”. This
module design intended to the ABM Grade 12 students and their parents or
guardian, the set-up of this Module based on the MOST ESSENTIAL LEARNING
COMPETENCIES (MELC) and BUDGET OF WORK in time frame allocation to help
and ensure that all the topic or lesson might be discuss especially in accounting
cycle, from journalizing to financial statement even income and business taxation.
This module arrange based on MELC respectively. My dear ABM student “kaya na
ito…”
Engagement Activity:
“JUMBLE JAMBLE KAYA MO BA ITO!”
I. JUMBLED WORDS
Provided below are jumbled letters, arrange them and write the appropriate
words in the box provided:
JUMBLED WORDS ANWERS

1. E L B A V I E C E R 1
2. S I N G C H A P U R 2
3. A S H C 3
4. S T U N C O C A 4
5. E V R E U N E 5
Lesson 1/Day 1 : FINANCIAL STATEMENTS AND THEIR ANALYSIS-SERVICE AND
MERCHANDISING BUSINESSES.
Module1: Statement of Financial Position (SFP)
Definition of the financial position (SFP) is a statement that gives the financial
condition of a business as of a given date. Known as balance sheet. It is composed
of three elements- assets, liabilities, and capital:
Assets- are things owned by the business.

Liabilities- are debts owed by the business to persons other than the owner.
Capital- refers to the investment or equity of the owner in the business.
Let’s go closer
Assets- We can say that properties or right on properties owned by the business.
They are items of value that belong to the business. In general, common
examples of assets are CASG, TOOLS, EQUIPMENT, BUILDING, and LAND. An
assets also is under the control and custodianship of the entity as a result of a
past transaction such as a purchase, an exchange, or a donation. Elaborate this,
assets will generate income for the entity.
I will describe what an asset is:

 Assets are controlled by the enterprise.
e.g. the owner of the corner lot at a commercial block has the sole control on how
utilized that lot. The owner has decided to least the lot to a car wash business.
Hence, the landowner earns rental and received an ASSET-CASH
 Asset result from past events.
e.g. A company acquired a building by buying it from the previous owner. Due to
this event, the company gained an ASSETS - THE BUILDING.
 Assets give future economic benefits.
e.g. Equipment used to provide services generates income in the form of cash.
Old fixed assets will provide future cash, when are sold.
 Assets can be used by themselves alone to yield income.
e.g. a different types of assets can be used to generate income. A set of kitchen
utensils is used to cook the dish that served at a restaurant. Hence, both kitchen
utensils and the restaurant premises (if owned by the business) are assets.
Specifically, assets include cash and cash equivalents, notes receivable, accounts
receivable, inventories, prepaid expenses, property, plant and equipment,
investment, intangible assets, and other assets.
Liabilities- Is a debt of the entity resulting from a previous transaction such as a

loan, a purchase from a supplier, or an agreement to assume the debt of another
party. Settlement of the liability will decrease the assets of the entity.
They payment of liability may be done through:

 Cash payment
 Distribution of other assets
 Rendering of services
 Substitution with another liability
 Conversion of the liability into ownership interest of the lender in the
borrower’s entity.
Examples of accounts considered as liabilities are notes payable, account payable,
accrued liabilities, unearned revenues, mortgage payable, bonds payable, and
other debts of the enterprise.
Capital- Aside from assets and liabilities, capital is also reflected in the Statement
of Financial Position (SFP). Primarily, a proprietor invest capital in the form of
funds, merchandise, equipment, or any other property to operate business.
Equity in a single proprietorship is termed as Capital Account. In a
partnership, there is a capital account for each partner. The complexity of
operations of large corporations, the shareholders’ equity section of the SFP
consists of ordinary share capital, preference share capital, appropriated and
unappropriated retained earnings, and other special equity accounts.

Act1module1 (No Template)

Uploaded by

Copyright:

Available Formats

Act1module1 (No Template)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Act1module1 (No Template)

Uploaded by

Copyright:

Available Formats

WESTERN COLLEGES INC

SENIOR HIGH SCHOOL

Learning Area ACCOUNTANCY, BUSINESS AND MANAGEMENT

Topic/s Fundamentals of Accountancy, Business and Management 2

Resource/s: Textbook: Fundamentals of Accountancy, Business and

Subject Mr. Alberto S. Miranda

MOST ESSENTIAL LEARNING COMPETENCIES (MELC)

JUMBLED WORDS ANWERS

Assets- are things owned by the business.

I will describe what an asset is:

Liabilities- Is a debt of the entity resulting from a previous transaction such as a

They payment of liability may be done through:

You might also like