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Rehiyon IV-A CALABARZON
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Grade: 11 Activity 2
Course Title: Fundamentals of Accountancy, Business
and Management 1 You have now some ideas about the three major
accounts of a financial make up. Assets, Liabilities and
Content: The Accounting Equation Owner’s Equity. Let me first define these three
Content Standards: The Accounting Equation accounts.
Performance Standards: Solve problems applying the Assets are a company's resources—things the
accounting Equation company owns. Examples of assets include cash,
accounts receivable, inventory, prepaid insurance,
Time Section Date investments, land, buildings and equipment.
Liabilities are a company's obligations—amounts the
company owes. Examples of liabilities include notes or
loans payable, accounts payable, salaries and wages
Learning Competencies: payable, interest payable, and income taxes payable (if
the company is a regular corporation). Liabilities can be
ABM_FABM11- IIIb-c-17 viewed in two ways:
Illustrate the accounting equation. (1) as claims by creditors against the company's assets,
and
ABM_FABM11- IIIb-c-18 (2) a source—along with owner or stockholder equity—of
Perform operations involving simple cases with the use the company's assets.
of accounting equation. Owner's or stockholders' equity also reports the
amounts invested into the company by the owners plus
Subject Matter: The Accounting Equation the cumulative net income of the company that has not
References: K to 12 Basic Education Curriculum – SHS been withdrawn or distributed to the owners.
–Accountancy, Business and Management (ABM), Owner's equity or stockholders' equity is the amount
pages 2-3 left over after liabilities are deducted from assets:
Textbook: Basic Accounting Theory and Practices – Assets - Liabilities = Owner's (or Stockholders') Equity
Ma. Luisa Witty Ramirez – Reyes, pages 16-21
Prepared by:
Abstraction
Application:
Work Together:
I will group you into five groups. Review the
Accounting Equation and examine each of the
transactions and perform necessary operation with
the use of Accounting Equation.
Transactions: