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Fabm2 Week 1

The document discusses preparing a statement of financial position (SFP) for a single proprietorship. It defines accounting and explains that an SFP presents an entity's financial position at a given date by reporting assets, liabilities, and equity. It lists the objectives as identifying the elements of an SFP and preparing one using a report or account form, properly classifying items as current or noncurrent. Finally, it provides sample SFP formats and an activity to prepare one in an account form.

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Vanya Quisto
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52 views8 pages

Fabm2 Week 1

The document discusses preparing a statement of financial position (SFP) for a single proprietorship. It defines accounting and explains that an SFP presents an entity's financial position at a given date by reporting assets, liabilities, and equity. It lists the objectives as identifying the elements of an SFP and preparing one using a report or account form, properly classifying items as current or noncurrent. Finally, it provides sample SFP formats and an activity to prepare one in an account form.

Uploaded by

Vanya Quisto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Objectives:

After going through this LAS, you are expected to:

1. Identify the elements of the SFP and describe each of them.


2. prepare an SFP using the report form and the account form with
proper classification of items as current and noncurrent.
Elements of Classification of:
 Asset
 Liability
 Equity

Statement of Financial Position for Single Proprietorship

Types:
1. Report Form
2. Account Form

Accounting can be defined as the “process of identifying, measuring , recording and


communicating economic information about an organization or or another entity, in
order to permit informed judgments by users of the information.” (Meyer 2009)
Input
Measurement

Recording Communicating Useful


Financial Information
Process Fia
Output
Statement of Financial Position, also known as the Balance Sheet, presents
the financial position of an entity at a given date. It is comprised of three main
components: Assets, liabilities and equity. Assets include anything the business
owns or money that the business owns. This includes cash, accounts receivable,
inventory, property and equipment, among others. Liabilities include anything the
business owes to another organization or individual. Items that would fall under
this classification include all accounts payable. The final classification, equity,
includes capitalization.
Sample Formats for:
A. Report Form
B. Account Form
Activity 3: Prepare Statement of Financial
Position

Direction: Prepare SFP in an account form.

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