FABM | W#1

STATEMENT OF FINANCIAL POSITION

FINANCIAL STATEMENTS

STRUCTURED REPRESENTATION OF THE ENTITY’S FINANCIAL POSITION, FINANCIAL PERFORMANCE, AND CASH FLOWS OF AN ENTITY THAT IS USEFUL TO A WIDE RANGE OF USERS IN MAKING ECONOMIC DECISIONS

FINANCIAL STATEMENTS

SHOW THE RESULTS OF THE MANAGEMENT’S STEWARDSHIP OF THE RESOURCES ENTRUSTED TO IT

FINANCIAL STATEMENT

THIS PROVIDES INFORMATION ABOUT THE ENTITY’S:

1. ASSETS

2. LIABILITIES

3. EQUITY

4. INCOME AND EXPENSES

5. CONTRIBUTIONS AND DISTRIBUTIONS

6. CASH FLOWS

FINANCIAL STATEMENTS

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THIS INFORMATION, ALONG WITH OTHER INFOMRATION IN THE NOTES, ASSITS USERS OF —— —— IN PREDICTING THE ENTITY’S FUTURE CASH FLOWS AND, IN PARTICULAR, THEIR TIMING AND CERTAINTY

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A COMPLETE SET OF FINANCIAL STATEMENTS COMPROMISES:

1. A STATEMENT OF FINANCIAL POSITION AS AT THE END OF THE PERIOD

2. A STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD

3. A STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD

4. A STATEMENT OF CASH FLOWS FOR THE PERIOD

5. NOTES, COMRPOMISING A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

6. A STATEMENT OF FINANCIAL POSITION AS AT THE BEGINNING OF THE EARLIEST COMPARATIVE PERIOD WHEN AN ENTITY APPLIES AN ACCOUNTING POLICY RETROSPECTIVELY

STATEMENT OF FINANCIAL POSITION

ALSO KNOWN AS THE BALANCE SHEET

STATEMENT OF FINANCIAL POSITION

THIS STATEMENT INCLUDES THE AMOUNTS OF THE COMPANY’S TOTAL ASSETS, LIABILITIES, AND OWNER\’S EQUITY WHICH IN TOTALITY PROVIDES THE CONDITION OF THE COMPANY ON A SPECIFIC DATE

PERMANENT ACCOUNTS

THESE ACCOUNTS ARE PERMANENT IN A SENSE THAT THEIR BALANCES REMAIN INTACT FROM ONE ACCOUNTING PERIOD TO ANOTHER

EX.) ASSETS, LIABILITIES, AND EQUITY ACCOUNTS

PERMANENT ACCOUNTS

THIS INSLUCES:

1. CASH

2. ACCOUNTS RECEIVAB;E

3. ACCOUNTS PAYABLE

4. LOANS PAYABLE

5. CAPITAL

PERMANENT ACCOUNTS

ACCOUNTS ARE RETAINED PERMANENTLY IN THE SFP UNTIL THEIR BALANCES BECOME ZERO

CONTRA ASSET ACCOUNT

THESE ACCOUNTS ARE PRESENTED UNDER THE ASSETS PORTION OF THE SFP BUT ARE REDUCTIONS TO THE COMPANY’S ASSETS

EX.) ALLOWANCE FOR DOUBTFUL ACCOUNTS IS A CONTRA ASSET TO ACCOUNTS RECEIVABLE

CONTRA ASSET ACCOUNT

THESE INCLUDE:

1. ALLOWANCE FOR DOUBTFUL ACCOUNTS

2. ACCUMULATED DEPRECIATION

BALANCE SHEET ELEMENTS

1. ASSET

2. LIABILITIES

3. EQUITY

ASSET

A RESOURCE CONTROLLED BY THE ENTITY AS A RESULT OF PAST EVENTS AND FROM WHICH FUTURE ECONOMIC BENEFITS ARE EXPECTED TO FLOW TO THE ENTITY

LIABILITIES

A PRESENT OBLIGATION OF THE ENTITY ARISING FROM PAST EVENTS, THE SETTLEMENT OF WHICH IS EXPECTED TO RESULT IN AN OUTFLOW FROM THE ENTITY OF RESOURCES EMBODYING ECONOMIC BENEFITS

EQUITY

THE RESIDUAL INTEREST IN THE ASSETS OF THE ENTITY AFTER DEDUCTING ALL ITS LIABILITIES

CURRENT ASSETS

THESE CLASSIFY AS —— WHEN:

1. IT EXPECTS TO REALIZE THE ASET, OR INTENTS TO SELL OR CONSUME IT, IN ITS NORMAL OPERATING CYCLE

2. IT HOLDS THE ASSET PRIMARILY FOR THE PURPOSE OF TRADING

3. IT EXPECTS TO REALIZE THE ASSET WITHIN TWELVE (12) MONTHS AFTER THE REPORTING PERIOD

4. THE ASSET IS CASH OR A CASH EQUIVALENT UNLESS THE ASSET IS RESTRICTED FROM BEING EXCHANGED OR USED TO SETTLE A LIABILITY FOR AT LEAST TWELVE (12) MONTHS AFTER THE REPORTING PERIOD

CURRENT ASSETS

EX.)

1. CASH

2. INVENTORY

3. MARKETABLE SECURITIES

4. ACCOUNTS RECEIVABLE

5. PREPAID EXPENSES

6. OFFICE SUPPLIES

NON-CURRENT ASSETS

ALL OTHER ASSETS (THAT ARE NOT CURRENT) SHALL BE CLASSIFIED AS THIS

NON-CURRENT ASSETS

EX.)

1. LAND

2. MACHINERIES

3. INVESTMENT PROPERTY

4. LAND IMPROVEMENTS

5. INTANGIBLE ASSETS

6. INVESTMENT IN AN ASSOCIATE

7. BUILDING

8. INVESTMENTS IN EQUITY SECURITIES

9. EQUIPMENT

CURRENT LIABILITIES

THESE CLASSIFY AS —— WHEN:

1. IT EXPECTS TO SELL THE LIABILITY IN ITS NORMAL OPERATING CYCLE

2. IT HOLDS THE LIABILITY PRIMARILY FOR THE PURPOSE OF TRADING

3. THE LIABILITY IS DUE TO BE SETTLED WITHIN TWELVE (12) MONTHS AFTER THE REPORTING PERIOD

4. IT DOES NOT HAVE AN UNCONDITIONAL RIGHT TO DEFER SETTLEMENT OF THE LIABILITY FOR AT LEAST TWELVE (12) MONTHS AFTER THE REPORTING PERIOD

CURRENT LIABILITIES

EX.)

1. TRADE ACCOUNTS PAYABLE

2. SALARIES PAYABLE

3. UTILITIES PAYABLE

4. SHORT-TERM NOTES PAYABLE

5. RENT PAYABLE

6. CURRENT INCOME TAX PAYABLE

NON-CURRENT LIABILITIES

ALL OTHER LIABILITIES (THAT ARE NOT CURRENT) SHALL BE CLASSIFIED AS ——

NON-CURRENT LIABILITIES

EX.)

1. BONDS PAYABLE

2. LONG-TERM NOTES PAYABLE

INVENTORY ACCOUNT

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THE MAIN DIFFERENCE OF THE STATEMENTS OF THE TWO TYPES OF BUSINESS LIES ON THE —— ——

SERVICE COMPANY

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A —— —— HAS SUPPLIES INVENTORY CLASSIFIED UNDER THE CURRENT ASSETS OF THE COMPANY

MERCHANDISING COMPANY

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A —— —— ALSO HAS SUPPLIES INVENTORY CLASSIFIED UNDER THE CURRENT ASSETS OF THE COMPANY, THE BBUSINESS HAS ANOTHER INVENTORY ACCOUNT UNDER ITS CURRENT ASSETS WHICH IS THE MERCHANDISING INVENTORY, ENDING

PERSONAL STATEMENT OF FINANCIAL POSITION

1. WRITE THEIR CURRENT SAVINGS AND EVERYTHING THAT THEY OWN (CLOTHES, PEN, PENCIL, ETC.)

2. WRITE THE AMOUNT THAT THEY OWE THEIR FRIENDS AND/OR FAMILY MEMBERS

3. DEDUCT THE AMOUNT THEY OWE FROM THE AMOUNT THEY OWN

REPORT FORM

A FORM OF THE SFP THAT SHOWS ASSET ACCOUNT FIRST AND THEN LIABILITIES AND OWNER’S EQUITY ACCOUNTS AFTER

(HADDOCK, PRICE, & FARINA, 2012).

(HADDOCK, PRICE, & FARINA, 2012).

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A FORM OF THE SFP THAT SHOWS ASSET ACCOUNT FIRST AND THEN LIABILITIES AND OWNER’S EQUITY ACCOUNTS AFTER

(——, ——, & ——, 2012).

ACCOUNT FORM

A FORM OF THE SFP THAT 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

(HADDOCK, PRICE, & FARINA, 2012).

(HADDOCK, PRICE, & FARINA, 2012).

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A FORM OF THE SFP THAT 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

(——, ——, & ——, 2012).