Fundamentals of ABM-2 Synthesis

Fundamentals
of Accountancy,
Business and
Management-2
SYNTHESIS
SUBMITTED TO:
MA’AM MARICRIS TOTTO DOMINGO
SUBMITTED BY:
PASAJOL, JAN ZYMON M.
The Fundamentals of Accountancy, Business and Management-2 is a very complicated but

still understandable subject for me. Even though we already had this subject in our First Semester, I
still struggle in some of the topics in our modules because it was difficult to comprehend but I was
still able to overcome it because of the sufficient learning materials given by our teacher. The lessons
in our module emphasizes the effect of the different financial statements and the Cash flows in a
certain business. It requires a masterful and excellent analyzing skills to be able to answer the
problems in the activities. All of the topics in the module were very useful to me since it made me
grasped more about the journey to be an Accountant in the future.
In my first week of answering my modules, the main topic of the study were about Identifying
the elements of Statement of Financial Position and Preparing a Statement of Financial Position and
Account form with proper classification of current and non-current. The Balance Sheet, also known as
the Statement of Financial Position, depicts an entity's financial position at a particular point in time.
Assets, liabilities, and equity are the three major components. Accountants may use the Statement of
Financial Position to determine an entity's financial health in terms of liquidity risk, financial risk,
credit risk, and market risk. The data on the statement of financial condition can be used for a variety
of financial evaluations, including comparing debt to equity and current assets to current liabilities.
It's among the financial statements, so it's usually accompanied with the income statement and the
statement of cash flows.
For the second and third week, it was a very difficult time for me because the topics were
very complicated but still I was able to comprehend it with the help of learning materials given by our
teacher. The highlighted topics in these weeks are Identifying the Elements of Comprehensive Income
and Describing each of these Elements for a Service Business and a Merchandising Business. In
Addition, I also learned about preparing Statement of Comprehensice Income using Single Step
approach. This financial statement shows the revenue gained and costs paid over a period of time,
including details on how the company worked. The statement of comprehensive income displays the
results of a company's operations for a specific time span. It depicts the company's profitability.
Profitability is the ability of the company to generate profits from its operation.
Profit means the excess of income over the expense of the company. Other term for profit or
net profit is net income. When you prepare a Single-Step Income Statement, make sure you title it
properly with the name of the company, the name of the statement (i.e. income statement), the period
covered by the statement and then list all revenue accounts and total them up, list all expense accounts
and total them up, and then in one single-step, take Total Revenues less Total Expenses to arrive at
Net Income. A single-step income statement reports on sales, expenditures, and ultimately profit or
loss generated by a company, but it does so by using only one equation to quantify profits.
With the fourth week, the main focus of the modules were Preparing an Statement of Changes
in Equity for a Single or Sole Proprietorship. A statement of changes in equity can be described as a
statement that can be made for partnerships, sole proprietorships, or companies and can show changes
in equity. This statement's main aim is to summarize the operation in take equity accounts for a given
time span. Here are the steps to prepare a Statement of Changes in Equity. Step 1: Gather the needed
information; Step 2: Prepare the heading; Step 3: Capital at the beginning of the period; Step 4: Add
additional contributions; Step 5: Add net income; Step 6: Deduct owner's withdrawals; and lastly is
Step 7: Compute for the ending capital balance. The aim and significance of the statement of changes
in equity is to enable financial statement analysts and reviewers to see the variables that affect owner's
equity over the accounting period.
As for my last week answering my modules in our subject Fundamentals of Accountancy,
Business and Management-2, I was very interested in our topic in Preparing a Cash Flow Statement
and discussing its Components and Structures. A cash flow statement is a financial statement that
shows how much money the company has made and invested for a certain time span. Cash flow
statements also indicate how much cash you have on hand, as well as cash equivalents such as bank
deposits, short-term investments, and other assets that can be converted to cash. A cash flow
statement shows you the company's financial situation, and whether you're taking in enough money to
cover your bills. A cash flow statement has three parts: operating activities, investing activities and
financing activities. In a cash flow statement, the goal is to measure your operating cash flow and
financing cash flow. When you add them, you get your net cash flow.

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Fundamentals

MA’AM MARICRIS TOTTO DOMINGO

PASAJOL, JAN ZYMON M.

The Fundamentals of Accountancy, Business and Management-2 is a very complicated but

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