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1. STATEMENT OF
FINANCIAL
POSITION
Presented by:
ALDRIN JON R.
MADAMBA, LPT

2. LEARNING COMPETENCY
1. Identify the elements of the SFP and describe each of them.
(ABM_FABM12-Ia-b-1)
2. Classify the elements of the SFP into current and noncurrent items.
(ABM_FABM12-Ia-b-2)
3. Prepare the SFP of a single proprietorship. (ABM_FABM12-Ia-b-3)
4. Prepare and SFP using the report form and the account form with proper
classification of items as current and noncurrent. (ABM_FABM12-Ia-b-4)
Upon successful completion of this module, you will be able to:
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3. ACTIVITY 1
__________1. The left side of the account is Debit.
__________2. The permanent accounts are the nominal account.
__________3. The right side of the account is credit.
__________4. The elements of the statement of financial position
are Assets and expenses.
__________5. Current Assets are easily convertible into cash within
the normal operating cycle of the business.
Instructions: Write True if the statement is correct and False if the
statement is incorrect (Collaboration).
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TRUE
FALSE
TRUE
FALSE
TRUE

4. ACTIVITY 1
__________6. The elements of Statement of financial position are Assets,
Liabilities and Owner’s Equity account.
__________7. Kinds of Assets are Current Assets and Noncurrent Assets.
__________8. Kinds of Liabilities are Current Liabilities and Noncurrent
Liabilities.
__________9. Under owner’s Equity Account includes Capital, Owner’s
withdrawal, Revenue and Expenses.
__________10. Account form and Report form are the two kinds of forms
of the Statement of Financial Position.
Instructions: Write True if the statement is correct and False if the
statement is incorrect (Collaboration).
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TRUE
TRUE
TRUE
TRUE
TRUE

5. ACTIVITY 1
Answer:
All are true except no. 2 and no. 4.
Explanations:
The answer for no. 2 is false because permanent account is real
account. Like assets, liabilities, and owner’s equity account.
The answer for no. 4 is false because the elements of Statement of
financial position are Assets, Liabilities, and Owners Equity account.
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6. 6
Financial Statement Are structured representation of an
entity’s financial position which is balance sheet and results of
its operation which is the statement of performance. Financial
statements are product of the accounting process.

7. EXPLANATION:
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A set of financial statement is presented
annually to the investors to provide them with
information about the company’s financial results
and financial position.

8. PURPOSE:
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The purpose of the statement of financial
position is to present true information about the
company’s assets, liabilities, and equity. It helps
to reveal the financial position of the company at
a particular date.

9. THE ELEMENTS OF THE FINANCIAL
POSITIONS: are resources you control that have resulted
from past events and can provide you with
the future economic benefits.
ASSETS
are your present obligations that have
resulted from past events and can require
you give up resources when settling them.
LIABILITIE
S
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means assets minus liabilities. Other terms
for equity are capital, net assets, and net
worth.
EQUIT
Y

10. 10
Note: The mentioned elements are termed Permanent Accounts
because their life or usefulness continues throughout the life of
the company.

11. PREPARATION OF SFP
REPORTS:
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ASSETS
LIABILITIES
+
OWNERS
EQUITY
EQUALS
The SFP reports the total assets, total liabilities,
and total owner’s equity of the business. It follows
the accounting equation, A = L + OE; that is, total
assets should be equal with total liabilities and
owner’s equity.

12. TWO FORMS OF
SFP:
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1.ACCOUNT FORM
2.REPORT FORM

13. 1. ACCOUNT FORM
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TWO FORM OF STATEMENT OF FINANCIAL POSITION:

14. 14
The format shown is the Account Form. All
assets are found on the left side of the account
and the liabilities and owner’s equity account
are found on the right side of the account.
TWO FORM OF STATEMENT OF FINANCIAL POSITION:

15. 2. REPORT FORM
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TWO FORM OF STATEMENT OF FINANCIAL POSITION:

16. 16
The table shown shows the Report Form format for the
statement of financial position. Assets, liabilities, and
owner’s equity accounts are in one direction. You must place
the assets first, then the total liabilities and owner’s equity
account.
This is usually the format that will be submitted to the
government and private agencies such as Banks. Financial
institutions, Bureau of Internal Revenue, City Treasurer’s
office and others.
TWO FORM OF STATEMENT OF FINANCIAL POSITION:

17. ACTIVITY 2
1. Information about the revenue and expenses is provided by:
a. Statement of changes in equity
b. Statement of Cash Flow
c. Statement of Financial position
d. Statement of performance
2. Information on changes in Assets, Liabilities and Owner’s Equity account:
a. Statement of changes in equity
b. Statement of Cash Flow
c. Statement of Financial position
d. Statement of performance
Instructions: Choose the answer that corresponds for each of the
question provided below: Encircle the letter only of the best letter.
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18. ACTIVITY 2
3. Cash, Cash Equivalents, merchandise inventory are classified as:
a. Current Liability
b. Current Asset
c. Long Term Liability
d. Owner’s Equity
4. The following are examples of contra asset account except:
a. Accumulated depreciation- Equipment
b. Accumulated depreciation-Building
c. Bad debt Expense
d. Allowance for Bad Debts
Instructions: Choose the answer that corresponds for each of the
question provided below: Encircle the letter only of the best letter.
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19. ACTIVITY 2
5. The elements of financial Statements are:
Instructions: Choose the answer that corresponds for each of the
question provided below: Encircle the letter only of the best letter.
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I Assets II Liability III Equity
IV Income V Expenses
a. I, II, IV, V c. IV, V, I
b. I, II, III d. I, II, III, IV, V

20. 20
WHAT HAVE I LEARNED?
Statement of Financial Position is one of the Financial reports
submitted by the company to the users of information such as banks
and other financial institutions. They are called permanent because of
their existence is continuous and the balance is forwarded to the next
account period. The elements of financial position are assets,
liabilities and owner’s equity account.

21. 21
WHAT HAVE I LEARNED?
The kinds of Assets are Current and Non-Current while the kinds of
liabilities are Current and Long-Term Liabilities. Under current assets are
cash, receivables, Inventories and prepaid expenses. Non-Current
assets include Land, Building Equipment and furniture and their
accumulated depreciation. While the Current Liabilities includes
Accounts Payables and Notes Payable and for the Long-Term Liabilities.

22. EVALUATION:
1. Angels Tutorial Center has an asset amounting to P200,000, Liability is
P75,00. How much is the owner’s equity account?
2. Assets of TMAM is P15,000 and Total Equity is P10,000, how much is
the total liabilities?
3. Assets is equal to P350,000, Owner’s equity is 250,000, How much is
Equity?
4. Sure Fresh Company’s total liabilities amounted P30,000. Total equity
had an ending balance of P50,000. How much is the total assets?
5. Current Assets is P50,000, Non-Current Assets is P150,000, Current
Liabilities is P10,000 and Non-Current Liabilities is P40,000, How much
is the Equity of the company?
Instruction: Solve for the account equation. Remember the Accounting
Equation? (Assets is equals to Liability and Owner’s Equity Account)
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23. EVALUATION:
Answers:
1.125,000 (200,000 – 75,000)
2.5,000 (15,000 – 10,000)
3.100,000 (350,000 – 250,000)
4.80,000 (30,000 + 50,000)
5.150,000 (200,000 – 50,000)
Instruction: Solve for the account equation. Remember the Accounting Equation?
(Assets is equals to Liability and Owner’s Equity Account)
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24. ENHANCEMENT:
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My Family’s Financial Position:
Instructions: Cut out pictures from magazines or you
can take a picture or draw all your family’s assets, I
want you to identify all the liabilities, and the owner’s
equity account. Make a reflection of what your family
need to do to make the Financial Position more
attractive.

25. THANK YOU!