CORDOVA CATHOLIC COOPERATIVE SCHOOL

(formerly Cordova Academy)

Poblacion, Cordova Cebu
LEARNING PACKAGE WEEK NUMBER 24 – February 14 – 19, 2022
Flow of Funds and Financial Reporting!
Name: Date Received:
Grade and Section: Date Submitted:
Subject: Business Finance Teacher’s Name: Mr. Andrew L. Bomediano Teacher’s Signature:

Standards: The learner...

Content: demonstrates an understanding of the definition of finance, the activities of the financial manager, and financial
institutions and markets.
Performance: *defines Finance;
*describes who are responsible for financial management within an organization; and
*describes the primary activities of the financial manager.
Formation: instills the value of thrift and savings by recognizing the major role of financial management and appreciating
varied financial institutions and their corresponding services.
Learning Outcome/Objectives:
explains the flow of funds within an organization – through and from the enterprise—and the role of the financial manager MELC;
distinguishes between stockholders and stakeholders;
describes the different stakeholders who would be interested in reviewing the financial statements prepared by a business
organization (MELC);
shows an understanding of ethical issues in finance (MELC); and
V: makes a tabular presentation on the institution and its services rendered.
PVMGOV: Teamwork, Relationship, Service, Respect, Commitment, Hard Work
21st Century Skills: Critical Thinking, Communication, Social Skills, Technology Literacy
Pretend that you are working as a finance manager for a manufacturing firm. The story is going well until your boss asks you to show
him a summary of results on how the company has fared in terms of financial performance in the past six months. You can almost hear
the boss shouting: “I want to know everything! I want to know sales, expenses, cash on hand, cash on the bank...everything! Before
you could say anything else, the scene gets more exciting. “I would like to see reports no later than tomorrow afternoon.”
For a real finance manager, the scene described above would neither be bad nor exciting. Finance managers are ready for this kind of
situation. Preparation with daily prayer is essential in order to effectively exercise your role as a future finance manager.
Day 1-2: Core Content: The Flow of Funds in Business Organizations
The flow of funds is essentially a financial report or account that illustrates fund inflow and outflow in an economy across different
sectors operating within it on a whom-to-whom basis.
Figure 21.2 - The Flow of Funds with Financial Institutions
Suppliers of Funds Financial Institutions or Demanders of Funds
(those who have surplus money) Intermediaries (in the form of loans and/or investments
● Individuals/Households ● Commercial Banks from the suppliers)
● Organizations (profit and ● Savings Banks ● Individuals/Households
nonprofit) ● Investment Banks ● Organizations (profit and nonprofit)
● Government ● Insurance Companies ● Government

Explore: Activity number 1 – Smooth Flow! Study figure 21.2 above on the flow of funds with financial institutions and describe the
role of financial intermediaries in the flow of funds through and from the business.
Firm-Up: Activity number 2 – Figure It Out! Study figure 21.3 on how financial institutions provide financing for firms and answer
the question:

1..How do the key financial

institutions serve as intermediaries
for suppliers and users of funds?
2..Which type of financial institution
do you think is most critical for
firms?
Transfer: Activity number 3 –
Community of Savers! What are
some of the financial institutions in
your community? Have you dealt
with any of them? Can you describe
the experience?
Closure: Happiness is a positive
cash flow.
Day 3-4: Core Content: Standards
in Financial Reporting
Financial statements provide a
snapshot of a firm’s financial
1
performance within a specified period of time. Before you proceed to learn about the preparation of financial statements, you’ll have a
quick review first on some essential theories and principles that you learned on your previous accounting subjects.
Explore: Activity number 4 – Quick Review! Match the letter with the definition that corresponds to the following terms:
1. Accounting System ___ A. Exchanges of goods or services between/among two or more entities or some other event having an
2. Debit ___ economic impact on a business enterprise.
3. Credit ___ B. An accounting record used to list a particular type of frequently recurring transaction.
4. Transactions ___ C. A record used to classify and summarize the effects of transactions.
5.Double-Entry Accounting D. An entry on the right side of an account.
___ E. A record used as the basis for analyzing and recording transactions. Examples include invoices,
6. Journal Entry ___ check stubs and receipts.
7. Journals ___ F. A collection of accounts maintained by a business.
8. Accounting Process (or G. Procedures used for analyzing, recording, classifying, and summarizing the information to be
cycle) ___ presented in accounting reports.
9. Special Journals ___ H. An entry on the left side of an account.
10. General Journal ___ I. Procedures and methods used, including data processing equipment, to collect and report accounting
11. Account ___ data.
12. Ledger ___ J. An accounting record used to record all business activities for which a special journal is not
13. Posting ___ maintained.
14. General Ledger ___ K. The process of summarizing transactions by transferring amounts from the journals to the ledger
15. Subsidiary Ledgers ___ accounts.
L. The grouping of supporting accounts that in total equal the balance of a control account in the
general ledger.
M. The general ledger account that summarizes the detailed information in a subsidiary ledger.
N. A collection of all the accounts used by a business that could appear on the financial statements.
O. A system of recording transactions in a way that maintains the equality of the accounting equation.
P. Records in which transactions are first entered, providing a chronological record of business
activity.
Q. The recording of a transaction in which debits equal credits. It usually includes a date and an
explanation of the transaction.

LET’S LEARN! - A financial statement is a record which gives the users a picture or description of how an individual, a business, or
an organization is in terms of financial health.
STOCKHOLDERS VS. STAKEHOLDERS - Finance managers are not only accountable to stockholders. They also have to almost
always consider the perspective of stakeholders. Both stockholders and stakeholders are all users of financial statements. A
stockholder is a person who bought shares of stocks of a publicly traded corporation. On the other hand, a stakeholder is a person
who is not necessarily the owner of the business, but has an interest or a stake on how the business is performing or how it iis
managed.
An internal stakeholder is someone who is directly involved in the business. The stakeholders are as follows:
(Employees; Stockholders; Top Management; Department Managers; Board of Directors; Labor Unions)
An external stakeholder is someone who is not directly involved in the business but in one way or another has a stake in how the
business is managed or how it is performing. The following are external stakeholders:
(Customers; Suppliers; Government; Competitors; Financial Institutions; Potential Investors)
Firm-Up: Activity number 5 – Compare and Contrast! Compare and contrast stockholders and stakeholders
COMPARISON DIFFERENCE

STOCKHOLDERS

STAKEHOLDERS

PVMGOV Integration: Activity number 6 – The Right Choice!

As a stakeholder, what specific values will you look for a company that you want to do business with?
Learning Outcomes/Objectives Check: Activity number 7 – Reflect Upon!
Do you agree that customers are the most important stakeholders? Justify your answer.
Closure: A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an
interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by
serving him. He is doing us a favor by giving us an opportunity to do so. - Mahatma Gandhi
Day 5: Study Day Pointers: Study about the basics of accounting, journal entry, elements of financial position and financial
performance and the four main categories of financial ratios: Liquidity, Profitability, Efficiency, Leverage (Solvency) you may refer to
Diwa - Business Finance book pages 70 to 78 in the library.
Day 6: Monthly Examination
.

Note: If you have any concerns or questions with regards to the activities and instructions of this learning package you can reach me through
my messenger chat box with the profile name Andrew Bomediano or call/text me at 09553707244.
You could also contact me through the school’s telephone number 496-8456.
Resources/Materials: Business Finance Books (Rex Book Store / DIWA); Teaching Guide for Senior High School BUSINESS FINANCE