FABM 2 Financial Accounting PDF

FABM 2 Prepared by: Bayog, Mary Kerr S.A. ### MODULE 1 ELEMENTS OF THE STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION - - ###### Example: ELEMENTS ASSETS ====== - CURRENT ASSETS -------------- - - - - - - - - - NON-CURRENT ASSETS --------------...

FABM 2 Prepared by: Bayog, Mary Kerr S.A. ### MODULE 1 ELEMENTS OF THE STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION - - ###### Example: ELEMENTS ASSETS ====== - CURRENT ASSETS -------------- - - - - - - - - - NON-CURRENT ASSETS ------------------ - - - - - - LIABILITIES =========== - CURRENT LIABILITIES ------------------- - - - - - NON-CURRENT LIABILITIES ----------------------- - - - - - OWNER'S EQUITY/CAPITAL ====================== - - - - - - ### MODULE 2 STATEMENT OF FINANCIAL POSITION --- REPORT FORM - KEY PARTS OF THE REPORT FORM OF THE STATEMENT OF FINANCIAL POSITION PREPARE THE STATEMENT HEADING ============================= - ###### Example: PREPARE THE ASSET SECTION ========================= - - ###### Example: PREPARE THE LIABILITIES SECTION =============================== - ###### Example: PREPARE THE OWNER'S EQUITY/CAPITAL SECTION ========================================== - ###### Example: ENSURE THAT THE ASSETS EQUATE TO LIABILITIES AND EQUITY ======================================================= - - - ###### Example:  ### MODULE 3 STATEMENT OF FINANCIAL POSITION --- ACCOUNT FORM ACCOUNT FORM - - - ###### Note: Kapag report form, vertical siya and nasa iisang column lang lahat. While 'yong account form, parang sa equation lang, asset sa right, liabilities & equity sa left. ###### Example: ### RULES OF DEBIT AND CREDIT ###### Example of T-Account: **INCREASE** **DECREASE** ### MODULE 4 ELEMENTS OF THE STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF COMPREHENSIVE INCOME - - - - - - - KEY FEATURES/ELEMENTS OF THE STATEMENT OF COMPREHENSIVE INCOME TITLE OR HEADING ================ - REVENUE ======= - EXPENSES ======== - - - - OPERATING/SELLING EXPENSES (1) ------------------------------ - - ###### Examples: Rent Expense Utilities Expense Salaries and Wages Insurance Expense Supplies Expense Repair and Maintenance NON-OPERATING/ADMINISTRATIVE EXPENSES (2) ----------------------------------------- - - ###### Example: Losses Lawsuit Settlements Interest Payments Restructuring Costs COST OF SALES ------------- - - - -  - - - - GAINS AND LOSSES ================ GAINS ----- - - - LOSSES ------ - - - Other Items =========== - - - ### MODULE 5 STATEMENT OF COMPREHENSIVE INCOME FOR SERVICE BUSINESS (SINGLE STATEMENT APPROACH) SINGLE STATEMENT OR SINGLE-STEP APPROACH - - - - ###### Example: PREPARING THE STATEMENT OF COMPREHENSIVE INCOME USING THE SINGLE-STEP APPROACH PREPARE THE STATEMENT HEADING ============================= - - ###### Example: ###### ###### DETERMINE THE TOTAL REVENUE FROM THE TRIAL BALANCE ================================================== - ###### Example: LIST ALL THE EXPENSES AND DETERMINE THE TOTAL ============================================= - ###### Example:  DETERMINE THE OTHER EFFECT OF OTHER ITEMS IF THERE IS ANY, THEN DETERMINE THE NET INCOME BY DEDUCTING THE SERVICE REVENUE FROM TOTAL EXPENSES. ============================================================================================================================================== - - ###### Example: ###### ###### **Note:** According to Corporate Finance Institute, nakalagay sa statement of comprehensive income ang lahat ng **UNREALIZED GAINS and LOSSES.** But based sa lecture, **hindi mo masasabing statement of comprehensive income if walang nakalagay na "other comprehensive income" even though hindi given.** Just like the picture below:  ### MODULE 6 STATEMENT OF COMPREHENSIVE INCOME FOR MERCHANDISING BUSINESS (MULTI-STEP APPROACH OR TWO-STATEMENT APPROACH) TWO-STATEMENT APPROACH - A. B. ### MODULE 7 STATEMENT OF CHANGES IN EQUITY AND FORMS OF BUSINESS FORMS OF BUSINESS ================= SOLE PROPRIETORSHIP ------------------- - - - **Advantages:** - - - - - **Disadvantages:** - - - - - PARTNERSHIP ----------- - - - **Advantages:** - - - **Disadvantages:** - - - - - CORPORATION ----------- - - - - - - **Advantages:** - - - - - **Disadvantages:** - - - - STATEMENT OF CHANGES IN EQUITY ============================== - - a. b. c. - - - STATEMENT OF CHANGES IN EQUITY: SOLE PROPRIETORSHIP --------------------------------------------------- ###### Example: ### MODULE 8 STATEMENT OF CASH FLOWS STATEMENT OF CASH FLOWS ======================= - - - - 3 ACTIVITIES OF CASH FLOWS ========================== OPERATING ACTIVITIES -------------------- - ###### Examples: - - - - - INVESTING ACTIVITIES -------------------- - ###### Examples: - - FINANCING ACTIVITIES -------------------- - Examples: - -