12

NAME:__________________________________________
Kim Yessamin Madarcos
GRADE/SECTION:______________________________
12 Copernicus

FUNDAMENTALS
OF ACCOUNTANCY, BUSINESS
AND MANAGEMENT 2
Quarter I - Week 4
Statement of Financial Position

CONTEXTUALIZED LEARNING ACTIVITY SHEETS

SCHOOLS DIVISION OF PUERTO PRINCESA CITY
Fundamentals of Accountancy, Business and Management 2 – Grade 12
Contextualized Learning Activity Sheets (CLAS)
Quarter I - Week 4: Statement of Financial Position
First Edition, 2021

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Published by the Schools Division of Puerto Princesa City

Development Team of the Contextualized Learning Activity Sheets

Writer: Andrea B. Adul
Content Editors: Marie Vic C. Velasco PhD and Shiela M. Caab
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Reviewers: Marie Vic C. Velasco PhD

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Layout Artist: Aileen A. Gonzalvo
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Division of Puerto Princesa City-Learning Resource Management Section (LRMS)

Sta. Monica Heights, Brgy. Sta. Monica, Puerto Princesa City
Telephone No.: (048) 434 9438
Email Address: puertoprincesa@deped.gov.ph
 Lesson 1
Elements of the Statement
of Financial Position
MELCS: Identify the elements of Statement of Financial Position and describe each of them.
(ABM_FABM12- Ie-6)
Objectives:
1. Identify the elements of Statement of Financial Position.
2. Describe each of the elements of the Statement of Financial Position.
3.Classify the elements of Statement of Financial Position into current and noncurrent
items.

Let’s Try
Directions: Read each question carefully. Write the letter of the correct answer on the space
provided before the number.

____1.
B What elements are directly related to the measurement of financial position?
A. Assets and liabilities
B. Income and expenses
C. Assets, liability and equity
D. Assets, liabilities, equity, and income

____2.
B It is defined as the present obligation arising from past events, the settlement of
which is expected to result in an outflow from the entity of resources embodying
economic benefits. What is it?
A. Assets C. Owner’s Equity
B. Liabilities D. Retained Earnings

____3.
C An asset which includes currency, coins, checking accounts, and undeposited
checks received from customers is called __________.
A. Accounts Receivable C. Cash
B. Accounts Payable D. Notes Receivable

____4.
A What is the correct expression of Accounting Equation?
A. A = L + OE C. A – OE + L
B. A + OE = L D. all of the above

____5.
C In a report form, all the elements of Statement of Financial Position are written
in___________.
A. diagonal C. vertical order
B. horizontal order D. none of the above

____6.
A In this form, assets are written on the left side while liabilities and owner’s equity are
written on the right side. What form is this?
A. Account form C. Non-current form
B. Current form D. Report form

1
____7.
C The following are current liabilities, EXCEPT?
A. Accrued Expense C. Bonds Payable
B. Accounts Payable D. Unearned Revenue

____8.
C The common practice is to present the classification of accounts in the Statement
of Financial position as _______________.
A. Noncurrent assets before current assets, noncurrent liabilities before current
liabilities and equity after liabilities
B. Current assets before noncurrent assets, noncurrent liabilities before current
liabilities and equity after liabilities
C. Current assets before noncurrent assets, current liabilities before
noncurrent liabilities and equity after liabilities
D. Noncurrent assets before current assets, current liabilities before
noncurrent liabilities and equity after liabilities

____9.
B At the end of the year, a company’s current assets equaled to 110,000.00, and non-
current assets equaled to 40,000. The amount of current liabilities and owner’s equity
are 45,000, and 90,000 respectively. How much are the non-current liabilities?
A. 10,000.00 C. 20,000.00
B. 15,000.00 D. 25,000.00

____10.
A As of December 31, 2019, Bjorn Company has assets of 23,000 and owner’s equity
of 15,000. What are the liabilities for Bjorn Company as of December 31, 2019?
A. 8,000.00 C. 30,000.00
B. 18,000.00 D. 38,000.00

Let’s Explore and Discover

FABM 2 CLASS GC
UNLOCKING OF
DIFFICULTIES
Have you tried going to a coffee shop or a coffee house?
Statement of Financial These are businesses that primarily serve coffee to its
Position (SFP)- also customer. Can you give the financial resources you think
these businesses have? What do you think are the things that
known as the balance they own and owe?
sheet that shows the
company’s total assets,
liabilities, and owner’s Yes Ma’am. They have coffee machine, other
equipment, office supplies and Inventories
equity on a specific
date.
The word “current They have capital, cash and debt
and non-current” in
this lesson are the
classification used for That is correct! Did you know that there is proper
the assets and classification for every financial resources? It may be
liabilities. an ASSETS, LIABILITIES or CAPITAL
100

One of the types of financial statements prepared by the company is the

Statement of Financial Position, this serves as a picture of the financial health of the
business at a specific time which contains true information about their assets,
liabilities, and equity.
2
STATEMENT OF FINANCIAL POSITION – also known as the balance sheet. This statement
includes the amounts of the company’s total assets, liabilities, and owner’s equity which in
totality provides the condition of the company on a specific date.

ELEMENTS OF STATEMENT OF FINANCIAL POSITION

1. Assets
2. Liabilities
3. Equity
ASSETS: Definition and Classification

DEFINITION OF ASSETS
Resources controlled by an entity as a result of past events and from which future
economic benefits are expected to flow to the entity (IASB2010)

CLASSIFICATION
An entity shall classify assets as Current when (PAS No. 7):
a. It expect to realize the asset, or intends to sell or consume
it, in its normal operating cycle.
(*Normal operating cycle is the period it takes for an
entity to buy its inventories, sell them, and collect the
related receivable)
b. It holds the asset primarily for the purpose of
CURRENT ASSETS
trading.
c. it expects to realize the asset within twelve months after
the reporting period. or
d. the asset is cash and cash equivalent (as defined in PAS
No. 7) unless asset is restricted from being exchanged or
used to settle a liability for at least twelve months after the
reporting period.
NON-CURRENT If assets do not satisfy any of the criteria above.
ASSETS

ACCOUNTS UNDER CURRENT ASSETS

Cash is any medium of exchange that a bank will accept for
deposit at face value. It includes coins, currency, operating
funds, money orders, bank deposits, and drafts.
1. Cash and Cash
Cash Equivalent Per PAS NO. 7, these are short-term, highly
Equivalents
liquid investments that are readily convertible to
known amount of cash and which are subject to an
insignificant risk of changes in value.
2. Account These are claims against customer arising from the sale of
Receivable services or goods on credit.
3. Notes Receivable A note receivable is a written pledge (like promissory note) that
the customer will pay the business a fixed amount of money on
a certain date.
4. Interest Receivable Related to Notes Receivable. These are collectible amount due to
the cost of borrowing money
5. Financial Asset at These assets are conventionally called trading securities.
Fair Value through FAFVPL are either debt or equity instruments of another entity
Profit or Loss held by the reporting entity.
(FAFVPL)
Per PAS No. 2, these are assets which are
(a) held for sale in the ordinary course of business;
6. Inventories (b) in the process of production for such sale; or
(c) In the form of materials or supplies to be consumed in the
production process or in the rendering of services.
3
 7. Supplies To be consumed by the business-like office supplies
8. Prepaid Expenses This is an expenditure that have not yet been recorded by a
company as an expense but have been paid in advance.
Ex: Prepaid Insurance and Prepaid Rent

ACCOUNTS UNDER NON-CURRENT ASSETS

Per PAS NO. 16, these are tangible assets that are held by an
enterprise for use in the production or supply of goods or
services, or for rental to others, or for administrative purposes
9. Property, Plant and which are expected to be used during more than one period.
and Equipment Included are items such as land, building, machinery and
equipment, furniture and fixtures, motor vehicles and
equipment.

Per PAS NO. 38, these are identifiable, non-monetary assets

without physical substance held for use in the production or
supply of goods or services, or for rental to others, or for
10. Intangible Assets administrative purposes. These include goodwill, patents,
copyrights, licenses, franchises, trademarks, brand names,
secret processes, subscription lists and non-competition
agreements.
Are long-lived assets not used in production. The company
intention for these assets is to lease out or for long-term capital
11. Investment appreciation (IASB,2001:A1204).
Properties Ex: If company buys land and erects a building for leased/rent.
This property will generate rental income and not for company
use.
Are living plants or animals held by the business for resale or
for breeding. This include sheep, trees in plantation, plants,
12. Biological Assets
dairy cattle, pigs, bushes, figs, and fruit tress.
(IASB,2001:A1226-A1227).

CONTRA ASSETS – contra assets are those accounts that are presented under the assets
portion of the SFP but are reductions to the company’s assets.
These include the following:

Allowance for Doubtful This represents the estimated amount that the company
Accounts may not be able to collect from delinquent customers. A
contra asset to Accounts Receivable.
Accumulated Depreciation This account represents the total amount of depreciation
booked against the fixed assets of the company. A contra
asset to the company’s Property, Plant and Equipment.

LIABILITIES: Definition and Classification

DEFINITION OF LIABILITIES
Is a present obligation arising from past events the settlement of which is expected to
result in an outflow from the entity of resources embodying economic benefits (assets)
(IASSB;A36).

CLASSIFICATION
An entity shall classify assets as Current when (PAS No. 1):
a. it expects to settle the liability in its normal
operating cycle;
CURRENT LIABILITIES b. it holds the liability primarily for the purpose of
trading;
c. the liability is due to be settled within twelve months
after the reporting period; or
4
 d. the entity does not have an unconditional right to
defer settlement of the liability for at least twelve
months after the reporting period.
If liabilities do not satisfy any of the criteria above, all
NON-CURRENT
other liabilities should be classified as non-current
LIABILITIES
liabilities.

ACCOUNTS UNDER CURRENT LIABILITIES

Are open accounts relating to purchase of goods and/or raw
1. Accounts Payable materials. This account represents the reverse relationship
of account receivable.
This is evidenced by promissory note. If a seller receives a
note receivable, the buyer then issues a note payable. Like
2. Notes Payable
notes receivable, notes payable would have a principal
amount, maturity date and interest rate.
Related to notes payable. Interest is considered as cost of
3. Interest Payable
borrowing money.
Accrued Expenses pertain to expenses incurred but not yet
4. Accrued Expense
paid. Ex: salaries, rent and utilities
The payment received in advance before providing its
5. Unearned customer with goods or services, the amounts received are
Revenues recorded in the unearned revenue account (liability
method).
Computed as 30% of corporate taxable income. For sole
6. Income Tax
proprietors, however, their taxable income is subjected to
Payable
the graduated tax rates.
These are portions of mortgage notes, bonds and other long-
7. Current Portion of
term indebtedness which are to be paid within one year from
Long-Term Debt
the balance sheet date.

ACCOUNTS UNDER NON-CURRENT LIABILITIES

These accounts represent bank loans as a source of
1. Long-Term Debt financing for the entity. Long-term debt can be a span of 5
to 25 years.
This account records long-term debt of the business entity
2. Mortgage Payable for which the business entity has pledged certain assets as
security to the creditor.
Contract of indebtedness sold to certain individuals. As in
the case of long-term debt, such indebtedness will bear
3. Bonds Payable
interest. A bond is sometimes evidenced with a bond
certificate, unless it is a scrip bond.

OWNER’S EQUITY
It refers what is left to the owners after all liabilities are paid.
This account title bears the name of the owner. This is used
CAPITAL to record the original and additional investment of the owner
of the business entity. It increases by the amount of profit,
decreases by loss and reduces by withdrawals.

(Source: Reymond Patrick P. Monfero, et al., Fundamentals of ABM 2-Teacher’s Guide,

Quezon City: Commission on Higher Education, 2016, 1-18.)

5
 Let’s Practice

Directions: Match Column A to Column B by

ACTIVITY 1 writing the letter of the correct answer on the line
next to each number.

Column A Column B

______1.
C This Column
liability A is an expense Column B
a. Capital
incurred but not yet paid.
b. Allowance for Doubtful
______2.
D This liability is evidenced by
Accounts
promissory note.

______3.
A This account title bears the name
c. Accrued Expense
of the owner.

______4.
E Are long-lived assets not used in
d. Notes Payable
production.

______5.
B Accounts is a contra asset to
e. Investment Properties
Accounts Receivable.

Directions: In each of these groups, one account is

not like the others. CROSS OUT the account that ACTIVITY 2
DOES NOT belong to the group.

CASH Accounts Payable

All accounts
SUPPLIES Unearned Revenue
are Current PREPAID EXPENSE Bonds Payable
Assets except EQUIPMENT Prepaid Expenses
Equipment

Cash Bonds Payable

Inventories Notes Payable
cas
Unearned Revenue Accounts Payable
Prepaid Expenses Unearned Revenue

In your own words, how can you describe the Assets, Liabilities and Equity? Briefly
explain your answer.
________________________________________________________________________________________
The accounting equation is sometimes known as the balance sheet equation or the basic
accounting equation. Liabilities represent the company's commitments, whereas assets represent
________________________________________________________________________________________
the company's valued resources. Liabilities and shareholders' equity both illustrate how a company's
assets are financed. 6
________________________________________________________________________________________

Let’s Do More

Directions: Identify the proper classification of the

ACTIVITY 1 items listed below. Write CUA for Current asset,
NONCUA for Non-current asset, CUL for Current
Liabilities, NONCUL for Non-current Liabilities and OE
for Equity.

____1.
NONCUA Building ____4.
OE Dela Cruz, Capital
CUA
____2. Inventories ____5. Utilities Payable
CUL
____3.
NONCUL Bonds Payable ____6. Account Receivable
CUA

Directions: Identify the account title and the

classification of the pictures below. ACTIVITY 2

PICTURE ACCOUNT TITLE CLASSIFICATION

CASH ASSET

Petty Cash Fund

ACCOUNT LIABILITIES
PAYABLE
unpaid invoices of purchases
from supplier

PREPAID ASSET
RENT
advance payment of rental for 2yrs

UTILITIES PAYABLE/
ACCRUED UTILITIES LIABILITIES
PAYABLE

Electric bill to be paid next month

How can you differentiate the classification of current and non-current assets and
liabilities? Briefly explain your answer.
_____________________________________________________________________________________
Accounts receivable and inventory are examples of current assets, while land and goodwill
are examples of noncurrent assets. Noncurrent liabilities, such as long-term debt, are financial
_____________________________________________________________________________________
commitments that are not due within a year.
7
 _____________________________________________________________________________________

Let’s Sum It Up
Activity 1
Directions: Complete the sentences by choosing the correct word in the box.

Owner’s Equity Current Liabilities Cash Flows

Assets Non-current Statement of Financial Position

Statement of __________________is
Financial position, also known as the balance sheet. This statement includes the
amounts of the company’s total __________,
assets ___________, and owner's
liabilities ____________
equitywhich in totality
provides the condition of the company on a specific date.
The elements of the Statement of financial position are ________,
assets __________
liabilities and
_______________.
owner's equity
The cash, account receivable, note receivable are accounts under _______________
assets
while accounts payable, notes payable are accounts under___________. liabilities The ___________
owner's equity
refers to what is left to the owners after all liabilities are paid.
Both asset and liability accounts are classified as _____________
current and ________________.
non-current

8
 Lesson 2
Preparation of Statement
of Financial Position
MELCS: Prepare a Statement of Financial Position using the report form and the account form
with proper classification of items as current and noncurrent. (ABM_FABM12- Ie-9)
Objectives:
1. Define the forms used in preparing the Statement of Financial Position.
2. Discuss the preparation of Statement of Financial Position.
3. Prepare the Statement of Financial Position with proper classification of accounts.

Let’s Explore and Discover

UNLOCKING
DIFFICULTIES
Report Form - A form of
SFP in which the asset
accounts are listed first
and then after the
liabilities and owner’s
equity accounts.

Account Form- A form

of SFP in which the
assets are written on
the left side and
liabilities and the
owner’s equity on the Imagine you are the sole-owner of a coffee shop.
right side. Then, you want to know the status of the following:

• How much is your cash for the month? Is it more than the previous month?
By how much?
• What are the assets that you have?
• Did you incur any liabilities?
• Are your assets enough to pay your liabilities when due comes?

That’s where Financial Statements become important to answer all possible question
about our business. With regard to Assets, Liabilities, and Equity, we must take a look at
the so-called Statement of Financial Position.

In the previous lesson, you have learned to define and classify the elements of the
Statement of Financial Position.

Now, let’s do another exciting activity as to how to prepare the Statement of Financial
Position.

9
Key Parts of the Statement of Financial Position

How to prepare the Statement of Financial Position

Heading. The heading must contain the Company Name, Report Name (which is
the SFP) and the period. The period must be stated as AS OF or AS AT since the
SFP contains the Permanent accounts.

10
 The ASSETS, list down the current asset accounts and follow by the non-current
asset accounts. It should be arranged based on its liquidity. Liquidity, in this
case, means the ease of converting such assets into cash.

The LIABILITIES, list down the current liability accounts and follow by non-
current liability accounts. It should be arranged also based on its liquidity.
Liquidity, for this purpose, means the ease of converting such liabilities into
cash.

The EQUITY, the equity contains the Capital account ONLY, The Capital
account must be the ending Capital from the SCE, so prepare the
Statement of Changes in Equity first before the SFP.

Other concerns:
a. Use of Peso sign if necessary (₱)
b. Round off amounts to two decimal places (.00)
c. Use the double-rule in the ending capital balance. (______ )

11
Presentation of Contra Assets in the Asset portion of Statement of Financial Position
or Balance Sheet

THE NET REALIZABLE VALUE AND BOOK VALUE

a. Net Realizable Value (NRV)

This is use for Accounts Receivable and Inventory. In the case of accounts
receivable, NRV can also be expressed as the debit balance in the asset’s accounts receivable
minus the credit balance in the contra asset account allowance for bad debts.
In the case of inventory, NRV is the expected selling price in the ordinary course of
business minus any cost of completion, disposal, and transportation.
b. Book Value
It refers to the value of particular asset on the company’s balance sheet after taking
accumulated depreciation into account.

Formats/Templates of Statement of Financial Position

a. Account Form
✓ Horizontal
✓ Has two (2) columns
✓ Left side shows the total Assets, and the right side shows total Liabilities and
Equity

12
b. Report Form

✓ Vertical
✓ Single (1) column
✓ Listing Assets at the top, highlighting the total Assets, and Liabilities and Equity at
the lower part, highlighting total Liabilities and Equity.

Both forms that are used in presenting the statements record the same
information about the assets, liabilities, and owner’s equity; they are simply presented
differently. Also, the Statement of Financial Position is formatted like the accounting
equation. Thus, the assets are always listed first.

(Source: Reymond Patrick P. Monfero, et al., Fundamentals of ABM 2-Teacher’s Guide,

Quezon City: Commission on Higher Education, 2016, 1-18.)

13
 Let’s Practice
Directions: Circle the correct answer.
ACTIVITY 1
Cuyno Trading had the following balance sheet accounts and balances:

Cash 90,000.00
Equipment 50,000.00
Building ?
Accounts Payable 50,400.00
Notes Payable 20,600.00
Bonds payable 50,500.00
Capital ?
1. How much is the current liabilities?
A. 50,500.00 C. 74,000.00
B. 71,000.00 D. 100,900.00
2. If the balance of the building account was P70, 000.00, how much is the
total liabilities and capital?
A. 18,500.00 and 210,000.00 C. 91,500.00 and 118,500.00
B. 71,000.00 and 88,500.00 D. 121, 500.00 and 88,500.00
3. If the balance of the building account was P60, 000.00 and P30, 000.00 of
the accounts payable were paid in cash, what would be the total liabilities
and capital?
A. 91,500.00 and 78,500.00 C. 121,500.00 and 78,500.00
B. 91,500.00 and 108,500.00 D. 121,500.00 and 108,500.00

Directions: Based on the information below, answer the

following questions by underlining the correct answer. ACTIVITY 2
Tabangay Company provided the following information:
12 / 31 / 2019 12 / 31 / 2020
Current Assets 210,000.00 ?
Non-current Assets 500,000.00 550,000.00
Current Liabilities ? 150,000.00
Non-current Liabilities 520,000.00 530,000.00
Capital 110,000.00 ?
*All assets and liabilities of the company are reported at year end.
1. What amount should be reported as current liabilities on December 31, 2019?
80,000.00 90,000.00
2. If the Net Income at the end of year is 80,000.00, how much is the capital?
80,000.00 190,000.00
3. After computing the equity at the end of the year, how much is the current
assets?
230,000.00 320,000.00

In your own words, what does a balance sheet show about a business?
A_____________________________________________________________________________________
balance sheet is a financial statement that shows the assets, liabilities, and shareholder
equity of a corporation. One of the three fundamental financial statements used to analyze
_____________________________________________________________________________________
a_____________________________________________________________________________________
corporation is the balance sheet. It gives a snapshot of a company's financial position
(what it owns and owes) as of the publication date.
14
 Let’s Do More

Directions: Below is the Post-closing Trial Balance of Austria

ACTIVITY 1 Law Office for the Year Ended December 31, 2020. Prepare the
Statement of Financial Position for Sole Proprietorship in the
following format and answer the processing questions that
follow. Write your answer on the space provided

•ACCOUNT FORM

•REPORT FORM

Processing Questions:
1. How much is the total current assets of Austria Law Office? __________
255,000
2. How much is the total non-current assets? ____________
45,000
3. How much is the total liabilities and Owners Equity? __________
300,000

15
 Directions: Answer the following questions by ticking
the correct box. You can select two or more answers. ACTIVITY 2

1. Based on the proper presentation of Statement of Financial Position, which part

is not presented correctly?
Assets Equity Heading Liabilities
2. What kind of format is used?
Account form Non-account form
Current form Report form
3. How the assets and liabilities arranged/ presented in the statement of financial
position?
From current to noncurrent, alphabetically
From Non-Current to Current, chronological
From Current to Non-current based on its use
From Current to Non-current based on its liquidity

Let’s Sum It Up
Activity 1
Directions: List down the steps in preparing the statement of financial position.

Heading. Company’s Name, Report, Period

Assets. Current to Noncurrent based on liquidity

Liabilities. Current to Noncurrent based on liquidity

Owner’s Equity. Amount of Capital

16
 Let’s Assess
Directions: Read each question carefully. Write the letter of the correct answer on the space
provided before the number.

____1.
A What is the correct expression of Accounting Equation?
A. A = L + OE C. A – OE + L
B. A + OE = L D. all of the above

____2.
C The following are current liabilities, EXCEPT?
A. Accrued Expense C. Bonds Payable
B. Accounts Payable D. Unearned Revenue

____3.
B What elements are directly related to the measurement of financial position?
A. Assets and liabilities
C. Assets, liabilities, equity, and income
B. Assets, liability and equity
D. Income and expenses

____4.
A In this form, assets are written on the left side while liabilities and owner’s equity are
written on the right side. What form is this?
A. Account form C. Non-current form
B. Current form D. Report form

____5.
A As of December 31, 2019, Bjorn Company has assets of 23,000 and owner’s equity
of 15,000. What are the liabilities for Bjorn Company as of December 31, 2019?
A. 8,000.00 C. 30,000.00
B. 18,000.00 D. 38,000.00

____6.
C An asset which includes currency, coins, checking accounts, and undeposited
checks received from customers is called __________.
A. Accounts Receivable C. Cash
B. Accounts Payable D. Notes Receivable

____7.
C In a report form, all the elements of Statement of Financial Position are written
in___________.
A. diagonal C. vertical order
B. horizontal order D. none of the above

____8.
C The common practice is to present the classification of accounts in the Statement
of Financial position as _______________.
A. Noncurrent assets before current assets, noncurrent liabilities before current
liabilities and equity after liabilities
B. Current assets before noncurrent assets, noncurrent liabilities before current
liabilities and equity after liabilities
C. Current assets before noncurrent assets, current liabilities before
noncurrent liabilities and equity after liabilities
D. Noncurrent assets before current assets, current liabilities before
noncurrent liabilities and equity after liabilities

____9.
B At the end of the year, a company’s current assets equaled to 110,000.00, and non-
current assets equaled to 40,000. The amount of current liabilities and owner’s equity
are 45,000, and 90,000 respectively. How much are the non-current liabilities?
A. 10,000.00 C. 20,000.00
B. 15,000.00 D. 25,000.00
17
B
____10. It is defined as the present obligation arising from past events, the settlement of
which is expected to result in an outflow from the entity of resources embodying
economic benefits. What is it?
A. Assets C. Owner’s Equity
B. Liabilities D. Retained Earnings

Answer Key
LESSON I

Let’s Try
1. B 2. B 3. C 4. A 5. C 6. A 7. C 8. C 9. B 10. A

Let’s Practice
Activity 1: Activity 2
1. C Not belong to the group
2. D 1. Equipment
3. A 2. Prepaid Exp. (Not Liability)
4. E 3. Unearned Rev (Not assets)
5. B 4. Bond payable, not current Liabilities

Let’s Do More
Activity 1 Activity 2
1. NONCUA Account Title Classification
2. CUA 1. Cash Asset
3. NONCUL 2. Accounts Payable Liabilities
4. OE 3. Prepaid Rent Asset
5. CUL 4. Utilities Payable/
6. CUA Accrued Utilities Payable Liabilities

Let’s Sum It Up
Activity 1:
Statement of Financial position, assets, liabilities, owner equity, assets liabilities
and owner’s equity, assets, liabilities, Owner’s equity, current and non-current

18
LESSON II

Let’s Practice
Activity 1: Activity 2
1. B 1. 80,000
2. D 2. 190,000
3. A 3. 320,000

Let’s Do More
Activity 1 Activity 2
Just check the format for report and account form. See to 1. Heading, Liabilities
it that you follow the correct format 2. Account form
Ans. After accomplishing the report 3. from current to non-
1. Total Current Assets = 255,000 current, liquidity
2. Total Non-current assets = 45,000
3. Total Liabilities & OE = 300,000

Let’s Sum It Up
Activity 1:
1. Heading. Company’s Name, Report, Period
2. Assets. Current to Noncurrent based on
liquidity
3. Liabilities. Current to Noncurrent based on
liquidity
4. Owner’s Equity. Amount of Capital

Let’s Assess
1. A 2. C 3. B 4. A 5. A 6. C 7. C 8. C 9. B 10. B

References
Teacher’s Guide

Andres, Carlsberg S., Arthur P. Barrido, Jr., Christopher B. Honorario. 2016.

Fundamentals of Accountancy, Business, and Management 1. DepEd: VIBAL
GROUP, INC.

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