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Business Finance
Quarter 4 – Module 4
Types of Nonfinancial
Instruments

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Business Ethics and Social Responsibility – Grade 12
Alternative Delivery Mode
Quarter 4 – Module 4: Types of Nonfinancial Instruments

First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Ronquilio G. Daño, LPT

Editor: Felicidad S. Alipe
Management Team: Bianito A. Dagatan EdD, CESO V
Schools Division Superintendent

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EPS, Mathematics

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 Lesson 1: Real Properties and Inventories

Learning Competencies: Compare and contrast the different types of investments

(ABM_BF12-IVm-n-23)

At the end of the lesson, you are expected to:

 identify real properties and inventories as type of nonfinancial investment
 identify patents and gold bullion as the type of investment
 compare and contrast the different types of investments


What is it?

REAL PROPERTIES

These are non-financial instruments that represent hard or fixed assets

usually attached to the soil.

Real properties include the following:

1. Land – a piece of lot or real estate owned by the enterprise on
which a building can be constructed for business purposes.
2. Building – edifice or structure used to accommodate the office,
store, or factory of a business enterprise in the conduct of its
operations
3. Equipment – includes typewriter, air-conditioner, calculator,
filing cabinet, computer, electric fan, trucks and cars used by
the business in its office, store, or factory.
4. Furniture and fixtures – includes tables, chairs, carpets,
curtains, lamp and lighting fixtures, and well decors.

INVENTORIES

These are products that are intended for sale, but remain unsold at the
end of the period. No economic or financial benefits are gained unless
inventories are sold and collection is made.

What’s more?

Direction:
Write RP if the statement described Real Properties and I if it is
Inventories. Use the answer sheet provided.
1. These are product with no economic or financial benefits that are
gained unless sold and collection is made.
2. This includes tables, chairs, carpets, curtains, lamp and lighting
fixtures, and well decors.
3. A piece of lot or real estate owned by the enterprise on which a
building can be constructed for business purposes.
4. These are products that are intended for sale, but remain unsold at
the end of the period.

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 Lesson 2: Patents and Gold Bullion

What is it?

PATENTS

These are intangible non-financial instruments granted by the

government. It represents exclusive rights of a business to manufacture the
invented product for a specific period of time. A patented product, therefore,
cannot be copied or produced by another manufacturing company.

GOLD BULLION

This is a precious commodity which carries a high market value most

especially when the market is volatile. Companies consider investing in gold
when the values of some products in the market depend on the value of gold.

What’s more?

Directions:
Write true if the statement is correct and false if it is not. Use the answer
sheet provided.
1. Patent is an example of intangible asset.
2. A patented product is can be copied or produced by any company.
3. Gold bullion is an investment for precious gold.
4. Companies consider investing in gold when the values of some
products in the market depend on the stock market.

Lesson 3: Types of Investments

What is it?

NOTE: Please refer to the lesson from Module 1 to Module 4.

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 What’s more?

Directions:
Compare and contrast the different types of investments. Follow the
graphic organizer below and use the answer sheet provided.

FINANCIAL INSTRUMENTS NONFINANCIAL INSTRUMENTS

IN 3 TO 5 SENTENCES, MAKE A
COMPARISON BETWEEN FINANCIAL
INSTRUMENTS AND NONFINANCIAL
INSTRUMENTS IN TERMS OF PURPOSE

MAKE A CONTRAST OF THE

FOLLOWING:
1. ADVANTAGES

2. DISADVANTAGES

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 Assessment
Directions:
Read each item carefully and write the letter of your choice on the
answer sheet provided.

1. These are products that are intended for sale, but remain unsold at
the end of the period.
A. gold bullion C. real properties
B. patents D. inventories
2. This is a precious commodity which carries a high market value most
especially when the market is volatile.
A. inventories C. gold bullion
B. real properties D. patents
3. These are intangible non-financial instruments granted by the
government.
A. real properties C. patents
B. inventories D. gold bullion
4. These are non-financial instruments that represent hard or fixed
assets usually attached to the soil.
A. gold bullion C. inventories
B. patents D. real properties
5. This includes tables, chairs, carpets, curtains, lamp and lighting
fixtures, and well decors.
A. land C. equipment
B. building D. furniture and fixture
6. This refers to an edifice or structure used to accommodate the office,
store, or factory of a business enterprise in the conduct of its
operations.
A. furniture and fixture C. building
B. land D. equipment
7. This refers to a piece of lot or real estate owned by the enterprise on
which a building can be constructed for business purposes.
A. building C. furniture and fixture
B. equipment D. land
8. This includes typewriter, air-conditioner, calculator, filing cabinet,
computer, electric fan, trucks and cars used by the business in its
office, store, or factory.
A. equipment C. building
B. furniture and fixture D. land
9. These are product with no economic or financial benefits that are
gained unless sold and collection is made.
A. inventories C. patents
B. real properties D. gold bullion
10. It represents exclusive rights of a business to manufacture the
invented product for a specific period of time.
A. patents C. gold bullion
B. inventories D. real properties

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 Answer Sheet

Name: __________________________________________________________
Grade & Section: ________________ Score: _______

Quarter 4 – Module 4

Lesson 1
What’s more?
1.
2.
3.
4.

Lesson 2
What’s more?
1.
2.
3.
4.

Lesson 3
What’s more?

Assessment
1. 2. 3. 4. 5. 6. 7.

8. 9. 10.

References

Nick L. Aduana (2017). Business Finance in the Philippine Setting for Senior
High. 839 EDSA, South Triangle Quezon City, Philippines: C & E Publishing, Inc.

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 BUSINESS FINANCE
SUMMATIVE TEST 2

Direction: Read the items carefully and choose the letter of the correct answer.

1. This represents the right to collect a sum of money in the near future.
A. insurance funds C. trade accounts
B. mutual funds D. insurance companies
2. This acts as a financial intermediary by pooling together the proceeds of
insurance policies sold to the public and investing the accumulated funds in
high-yielded maturing securities from investment houses.
A. insurance companies C. mutual funds
B. insurance funds D. trade accounts
3. This refers to money collected and pooled by insurance companies from the
premiums paid by the insured or policyholders and used as protection or hedge
against uncertain risk.
A. mutual funds C. insurance funds
B. insurance companies D. trade accounts
4. This refers to money pooled together by people, kept and handled by a
professional manager.
A. trade accounts C. insurance companies
B. mutual funds D. insurance funds
5. This refers to an amount collectible from the customer to whom sales have been
made or services have been rendered on account or credit.
A. accounts receivables C. interest receivables
B. notes receivables D. advance to employees
6. This refers to an edifice or structure used to accommodate the office, store, or
factory of a business enterprise in the conduct of its operations.
A. furniture and fixture C. building
B. land D. equipment
7. This refers to a piece of lot or real estate owned by the enterprise on which a
building can be constructed for business purposes.
A. building C. furniture and fixture
B. equipment D. land
8. This includes typewriter, air-conditioner, calculator, filing cabinet, computer,
electric fan, trucks and cars used by the business in its office, store, or factory.
A. equipment C. building
B. furniture and fixture D. land
9. These are product with no economic or financial benefits that are gained unless
sold and collection is made.
A. inventories C. patents
B. real properties D. gold bullion
10.It represents exclusive rights of a business to manufacture the invented product
for a specific period of time.
A. patents C. gold bullion
B. inventories D. real properties