What is a Statement of

Financial Position?
 STATEMENT OF FINANCIAL POSITION
OR BALANCE SHEET
•A Statement of Financial Position (SFP or a
Balance Sheet (BS) an accounting report that
shows the financial condition of the business entity.
•It reports the permanent accounts as of the end of
an accounting period.
What are the ELEMENTS of Statement of
Financial Position OR Balance Sheet?
 ALE…..

•ASSETS
•LIABILITIES
•EQUITY (CAPITAL)
How are Statement of Financial
Position presented?
 REPORT FORM
• Shows asset accounts first and
then liabilities and owner’s equity
accounts after.
 ACCOUNT FORM

• It shows assets on the left side and

liabilities and owner’s equity on the right
side just like the debit and credit balances
of an account.
What is the difference between the
SFP of a Service Company and a
Merchandising Company?
•Merchandise inventory, end
AGREEMENT:
 Write your autobiography.(short bond paper)
It should contain the following information, personal
details , things you do very well, two greatest
achievements in life, what in yourself you’re proudest
of, happiest moment, positive words that your friends
use to describe you, personal goal that you already
achieved, three blessings for which you are most
thankful to God, three of YOUR positive qualities,
AGREEMENT:
difficulties,challenges and problems that you are
able to solve and overcome and how do you see
yourself seven (7) years from now.