ENTREPRENEURSHIP

T.L.E 9
Objectives:
 a. Describes the Assets, Liabilities and
Owner’s Equity and its categories.
 b. Recognize the Assets, Liabilities and

Owner’s Equity on the Balance Sheet.

 c. Construct the Balance Sheet together

with its parts: Assets, Liabilities and

Owner’s Equity.
 d. Relate the importance of knowing the

Assets, Liabilities and Owner’s Equity in real

life situations
WHO WANTS TO
BE A
BILLIONAIRE?
 ASSETS, LIABILITIES
AND OWNER’S EQUITY
PRE ACTIVITY

HUGOT in
Entrepreneurship
INTEREST
CAPITAL
RISK
MONEY
BASIC CONCEPT
ASSET
-----a resource
with economic value
 that an individual,
corporation or
country owns or
controls with the
expectation that it
will provide a future
benefit. Assets are
reported on a
company's 
balance sheet and
are bought or
created to increase a
firm's value or
benefit the firm's
operations.
LIABILITIES  defined as a company's
legal financial debts or
obligations that arise
during the course of
business operations.
Liabilities are settled over
time through the transfer
of economic benefits
including money, goods or
services. Recorded on the
right side of the balance
sheet, liabilities include
loans, accounts payable,
mortgages, 
deferred revenues and
accrued expenses.
OWNER’S EQUITY
 The capital employed in a company,
computed by deducting the book value of the
liabilities from the book value of the assets.
Also called net assets, net worth,
shareholders' equity, or shareholders' funds.
MAKE YOUR OWN BALANCE SHEET
 Provide your own name of business.
 With the entries per group, make your own

balance sheet.
 Each group is provided by set of amounts.
 Add the total asset. Liabilities and the

owner’s equity.
 Write it on a clean sheet of paper.
WHERE DOES THE MONEY OF JUAN
GOES?