FUNDAMENTALS OF

ACCOUNTANCY, BUSINESS AND

MANAGEMENT 2
With Sir Issachar F. Barez
Picture Analysis
OBJECTIVES

a. describe the three elements of the Statement of

Financial Position - Asset, Liabilities, and Capital.
b. classify account titles as to Asset, Liabilities, and
Capital.
c. value the essential characteristic of Assets,
Liabilities, and Capital
d. prepare an SPF using the report form with proper
classification of items as current and non-current.
 Instruction

Use the meta cards with accounting titles to

classify as to Statement of Financial Position
elements – Assets, Liabilities, and Capital
Statement of Financial Position elements

ASSETS LIABILITIES CAPITAL

 Statement of Financial Position elements

ASSETS LIABILITIES CAPITAL

• Cash • Accounts Payable • Drawings
• Petty Cash • Notes Payable-short • Capital
• Supplies term
• Inventories • Accrued Expenses
• Accounts Receivable • Unearned Income
• Notes Receivable • Interest Payable
• Prepaid Expenses- e.g. • Notes Payable- long
Rent term
• Building • Bonds Payable
• Land
• Furniture and Fixtures
STATEMENT OF FINANCIAL POSITION

SOURCE: https://www.quora.com/Who-are-the-users-of-accounting-information-1
STATEMENT OF FINANCIAL POSITION
ELEMENTS

• Summarizes the financial condition of the

business at a point in time.
• Estimates net worth or owner equity.
• Most transaction affect the balance sheet, so
it may change daily.
STATEMENT OF FINANCIAL POSITION
ELEMENTS (purpose)

• Everything owed and owned by the business or

individual at a given point in time.
Asset – anything of value owned.
Liabilities – any debt or other financial
obligation owed to someone else.
Owner Equity/Net Worth – the amount the
owner has invested in the business.
STATEMENT OF FINANCIAL POSITION
ELEMENTS

SOURCE: https://www.slideshare.net/42217909/international-financial-reporting-standards-ifrsppt
STATEMENT OF FINANCIAL POSITION
ELEMENTS
STATEMENT OF FINANCIAL POSITION
ELEMENTS
STATEMENT OF FINANCIAL POSITION
ELEMENTS
STATEMENT OF FINANCIAL POSITION
ELEMENTS
STATEMENT OF FINANCIAL POSITION
ELEMENTS
STATEMENT OF FINANCIAL POSITION
ELEMENTS
STATEMENT OF FINANCIAL POSITION
ELEMENTS
BASIC ACCOUNTING EQUATION

SOURCE: https://www.double-entry-bookkeeping.com/accounting-equation/the-accounting-equation/
Parts of Statement of
Financial Position
STATEMENT OF FINANCIAL POSITION
OR BALANCE SHEET FORMS
REPORT FORM
ACCOUNT FORM

SOURCE: https://www.referenceforbusiness.com/encyclopedia/Assem-Braz/Balance-Sheet.html
Activity.

1. Group yourselves into three. Simply by counting

of to three.
2. Each group shall explain the essential
characteristics:
a. Assets (1st group)
b. Liabilities (2nd group)
c. Capital (3rd group)
Short Quiz.

1. What are the three SFP elements?

2. Name one essential characteristic of Assets,
Liabilities, and Capital.
3. Name two account titles that belong to
Assets, Liabilities, and Capital.
Assignment. (1 whole sheet)
THANK YOU!