Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Santa maria bulacan campus
Santa Maria, Bulacan

Name: Flores, Erika C.

Section: BSA 2-1
Date and Time of Submission: December 3, 2021 (6:00 PM)

CONCEPTUAL FRAMEWORKS AND ACCOUNTING STANDARDS

ANSWERS TO LESSON MODULES
03 LESSON: PAS 1 PRESENTATION OF FINANCIAL STATEMENTS (PART 1)

RESEARCH ANALYSIS
Discussion Questions:
1. Define the statement of financial position.
 A statement of financial position is another name for a balance sheet. It is used to
provide an overview of a business’s financial position at a given point in time. A
statement of financial position is commonly used to assess the position of a business in
terms of financial stability and potential risk.
2. Define asset. Give example of current and noncurrent assets.
 A resource with economic worth that an individual, corporation, or country possesses or
controls with the hope of future gain is referred to as an asset. Assets are bought or
developed to raise a company's value or benefit its operations, and they are reported on
the balance sheet. An example of current asset is cash. On the other hand, an example
of noncurrent asset is equipment.
3. Define liability and give example.
 A liability is a financial obligation of a company that results in the company’s future
sacrifices of economic benefits to other entities or businesses. A liability can be an
alternative to equity as a source of a company’s financing. Moreover, some liabilities,
 such as accounts payable or income taxes payable, are essential parts of day-to-day
business operations.
4. What are the elements of stockholder’s equity?
 Four components that are included in the shareholders' equity calculation are
outstanding shares, additional paid-in capital, retained earnings, and treasury stock.
5. What is the purpose of the notes to financial statement?
 Financial statement notes are the supplemental notes that are included with the
published financial statements of a company. The notes are used to explain the
assumptions used to prepare the numbers in the financial statements, as well as the
accounting policies adopted by the company.

ASSIGNMENT
The statement of financial position shows the entity’s financial condition, give five (5) for each
line items included assets, liabilities and stockholder’s equity.

Assets
 Cash and cash equivalents
 Accounts Receivable
 Inventory
 Land
 Building

Liabilities
 Accounts payable
 Principal and interest on a bank loan
 Salaries and wages payable
 Notes payable
 Income taxes payable
 Mortgages payable

Stockholder’s Equity
 Common stock
 Additional paid-in capital
 Preferred stock
 Retained earnings
 Accumulated other comprehensive income
FORMATIVE ASSESSMENT

Multiple Choices

1. C
2. B
3. C
4. D
5. B
6. A
7. A
8. C
9. C
10. C

References
Links:
https://library.croneri.co.uk/cch_uk/iast/ias1-200709
https://www.iasplus.com/en/standards/ias/ias1