Scribd Logo
Upload

Welcome to Scribd!

  • 81 views

    Accounting Reviewer

    Uploaded by

    Maxene Joi Pigtain
    The statement of financial position (SFP), also known as the balance sheet, contains information about a company's assets, liabilities, and equity. It has two parts: assets on one side and liabilities and equity on the other side. Major components of assets include cash, receivables, inventory, prepaid expenses, and property, plant and equipment. Major liability accounts include payables, accrued expenses, unearned income, and long-term liabilities. Equity represents the owner's claim and is composed of investments and retained earnings. The SFP can be presented in either an account format resembling a T-account or a simple list report format.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Accounting Reviewer

    Uploaded by

    Maxene Joi Pigtain
    81 views2 pages
    The statement of financial position (SFP), also known as the balance sheet, contains information about a company's assets, liabilities, and equity. It has two parts: assets on one side and liabilities and equity on the other side. Major components of assets include cash, receivables, inventory, prepaid expenses, and property, plant and equipment. Major liability accounts include payables, accrued expenses, unearned income, and long-term liabilities. Equity represents the owner's claim and is composed of investments and retained earnings. The SFP can be presented in either an account format resembling a T-account or a simple list report format.

    Original Title

    accounting reviewer

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The statement of financial position (SFP), also known as the balance sheet, contains information about a company's assets, liabilities, and equity. It has two parts: assets on one side and liabilities and equity on the other side. Major components of assets include cash, receivables, inventory, prepaid expenses, and property, plant and equipment. Major liability accounts include payables, accrued expenses, unearned income, and long-term liabilities. Equity represents the owner's claim and is composed of investments and retained earnings. The SFP can be presented in either an account format resembling a T-account or a simple list report format.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    81 views2 pages

    Accounting Reviewer

    Uploaded by

    Maxene Joi Pigtain
    The statement of financial position (SFP), also known as the balance sheet, contains information about a company's assets, liabilities, and equity. It has two parts: assets on one side and liabilities and equity on the other side. Major components of assets include cash, receivables, inventory, prepaid expenses, and property, plant and equipment. Major liability accounts include payables, accrued expenses, unearned income, and long-term liabilities. Equity represents the owner's claim and is composed of investments and retained earnings. The SFP can be presented in either an account format resembling a T-account or a simple list report format.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    Statement of Financial position(SFP) also referred to as 4.

    PREPAID EXPENSES
    balance sheet. - Future expenses that company paid for in
    advance,
    Balance sheet – kailangan balance tong dalawang parts
    - It is placed on this account hanggat hindi mo pa
    na to
    nauuse yung service or items.
    1. Assets on the other side - Ex: loads – after mo maubos yung load, the cost
    of the load is transferred into prepaid expense.
     Assets are resources with future benefits - Ex: insurance – kasi diba mag papay ka muna
     Ex: receivables, inventory , equipment tas after mo mapay if something happens in the
     Its should be used in the company future tsaka mo lang mabebenefit yung
    binayaran mo.
    2. Liabilities and equity is on the other
    5. PROPERTY, PLANT, AND EQUIPMENT (PPE)
     Liabilities – claims of creditors - Long terms assets that are used in the
     Equity – claims of owners operations of the company.
    - Kaya long terms kasi these assets will be used in
    SFP
    the business for more than one year.
    Topmost is the title - Ex: Land, building, warehouse, automobiles,
    delivery vehicles, computer and manufacturing
    1st line is the name of the company equipment.
    2nd line identifies the fs which is the sfp
    6. INTANGIBLE ASSETS
    3rd line is the date “as of the year ended” – other - Long term asset similar to PPE. Also used in the
    financial statement kasi “for the year ended” business for more than 1 year.
    ELEMENTS OF SFP - Intangible asets are ones you cannot see or
    touch.
    SFP is report based on accntg equation Assets = - Ex: patent, trademark, brand name.
    Liabilities + owner’s equity

    LIABILITIES
    ASSETS: - Company that is required to pay
    1. CASH - Payments for liabilities may be in cash, goods,
    - Is money owned by the company or services
    - - refers only to funds readily available to spent
    for company’s operation 1. PAYABLES
    - Opposite of right to collect is the obligation to
    - Used to buy assets, paying suppliers, utilities,
    employee salaries and others. pay
    - Payables are obligations to make payments to
    2. RECEIVABLES creditors
    - Company’s right to collect or claim  ACCOUNTS PAYABLE
    payments comes from unpaid sales or lending Obligations to the suppliers of
    activities. inventories
    1. Accounts receivables – receivable from - It is evidenced by the supplier’s sales invoices
    customers that has a term of 30 days. and delivery receipts.
    2. Notes Receivables – evidenced by - Usually nagbibigay ng 30 days para makabayad
    promisorry notes. some are 60 days.
    - Pag nakabayad ka ng mas maaga or within ten
    3. INVENTORY day may 2% discount ka.
    - Cost of unsold merchandise  NOTES PAYABLE
    - Obligation evidenced by Promisorry note

    2. ACCRUED EXPENSES
    - Unpaid expenses of the company
    - Ex: Salaries Payable, Rent payable, Utilities
    payable, Interest payable

    3. UNEARNED INCOME
    - Liability payable in goods or services

    4. LONG- TERM LIABILITIES


    - Obligations with due dates that fall more than 1
    year,
    - Ex: Bank Loan that is documented by
    promisorry note.

    EQUITY

    - Net asset of the business.


    - Composed of the owner’s investments and the
    accumulated net income of the company

    PRESENTATION OF SFP

    - There are 2 acceptable format of the SFP


    1. Account form – mimics the general ledger
    T- account format. Assets are on the left
    and liabilities & equity are on the right.

    2. Report Form – is a simple list. All the assets


    are listed first, followed by liabilities and
    equity account.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy