Name: Narissa Juliano Subject: Financial Management 2

Year and Course: BSBA-2

Reflection Paper
My reflection begins with the desire to learn about the elements of balance sheet
in which it shows and allows the firms to see and review their financial position.
A balance sheet shows the financial condition of an accounting entity as of a
particular date. The balance sheet consists of assets, the resources of the firm;
liabilities, the debts of the firm; and stockholders’ equity, the owners’ interest in the firm.
The assets are derived from two sources, creditors and owners. It helps me identify the
resources and debt of firm. The balance sheet is composed of three parts namely;
assets, liability and stockholders’ equity. Assets may be physical, such as land,
buildings, inventory of supplies, material, or finished products. Assets may also be
intangible, such as patents and trademarks. Assets are normally divided into two major
categories: current and noncurrent (long-term).
Assets in the company are the current and non-current (long-term) this are the
cash or bonds on hand that the company may claim within the year. Its very vital for it’s
the heart and soul of the business to run and to payoff the debt and liabilities. In firms
like where I am working, we review the financial position of the firm as a guide if the firm
has earning or breakeven.
Liabilities are probable future sacrifices of economic benefits arising from present
obligations of a particular entity to transfer assets or provide services to other entities in
the future as a result of past transactions or events. Liabilities are usually classified as
either current or long-term liabilities. Current liabilities are obligations whose liquidation
is reasonably expected to require the use of existing current assets or the creation of
other current liabilities within a year or an operating cycle, whichever is longer.
Liabilities serves as the guiding tool of the firm on their payables and bonds. In
my work, it symbolizes all payables and long-term payables that firm needs to pay.
Stockholders’ equity is the residual ownership interest in the assets of an entity
that remains after deducting its liabilities. The elements of stockholders’ equity are paid-
In capital, the first type of paid-in capital account is capital stock. Two basic types of
capital stock are preferred and common, common stock shares in all the stockholders’
rights and represents ownership that has voting and liquidation rights, preferred stock
seldom has voting rights, Donated capital may be included in the paid-in capital. Capital
is donated to the company by stockholders, creditors, or other parties, and retained
earnings are the undistributed earnings of the corporation.
Stockholders’ equity shows the number of dividends to be payoff to the holder. It
also shows the amount needed and the ability of the firm and the growth it can reach.
The next part of my reflection shows the income statement of the firm. It shows
the revenue, expenses and gains and losses of the company.
Name: Narissa Juliano Subject: Financial Management 2
Year and Course: BSBA-2
Sales (revenues) represent revenue from goods or services sold to customers,
the cost of goods sold to produce revenue, operating expenses consist of two types:
selling and administrative.
Sales and expenses are two main factors that keeps the business entity running
and cash flow is observed.