REVIEWER IN PERDEV

Lesson 1: Holistic Development of the Self

Holism is the tendency in nature to form wholes which are greater than the sum of the parts through creative evolution.

A. Physiological Development This includes the five senses and other physical characteristics including the changes
in the body and the development of skills related to mobility or movement. Physiological changes do not stop.
B. Cognitive Development
Cognition. The American Psychological Association described cognition as the processes of knowing which
includes remembering, attending, and reasoning.
The cognitive processes include the higher mental processes like memory, language, perception, problem-
solving, and abstract thinking.
Attitude. This is one of the aspects that is influenced by mental skills. In 2005, Hogg and Vaughan, as cited by
Llaneza-Ramos (2017), described it as “a relatively enduring organization of beliefs, feelings, and behavioral
tendencies towards socially significant objects, groups, events, or symbols.”

Social and Emotional Development This is described as our inherent or innate capability and needs to reach out and
form relationships with other people.

Emotions are responses that create biochemical reactions in the body. These reactions change the physical state.
Feelings are the mental reactions and association to emotions. They are subjective because they are influenced by
personal beliefs, experiences, and memories.

Spiritual development is characterized by the discovery and experience of the inner guide that steers the values and
beliefs of a person.

Values. They are the judgment that people make about issues, people, or things. They are subjective because their
formation is shaped by their upbringing and life experiences.

Virtue. It is the quality that echoes or reflects the values.

Psychological Development In connection with the elements of attitude, psychological development focuses on how
these three acts in accordance or opposition of another. Aside from this, psychological development is the growth and
development of a person’s cognitive, emotional, and social skills.

Lesson 2: Integration of Thoughts, Feelings and Behaviors

Dualism is associated with Rene Descartes. He is a philosopher who proposed the theory of duality.

Duality is the recognition and comprehension of the nature of things dually.

The mind/body connection means that your thoughts, beliefs, feelings, and attitudes affect the body either in a positive
or negative way. A healthy mind means having a healthy body as well.

Cognitive Behavioral Therapy’s main purpose is to correct misconceptions, false beliefs, and faulty reasoning so that you
can sustain a healthy level of adjustment and connection with other people.

Rewards These are the incentives that a person receives when doing a positive or the desired behavior.

Associations. Regarding of associations, a person is encouraged to relate behavior to an outcome.

Irrational beliefs are thoughts that are not based on reality. This can be done by challenging the beliefs of a person and
finding out if they have bases in reality.

Automatic judgment happens when a previous experience crosses the mind, and the person automatically judges the
experience.

Reflection entails thinking what your thoughts and emotions are to avoid making automatic judgments.

To help you take care of the mind and body, remember S E M R W M R R

S–leep. E–xercise. M–editate. R–ead. W–rite. M–e time. R–est. R–emember to be happy.

Self-Evaluation It is the act of recognizing and evaluating the thoughts, emotions, and behaviors of the person and
creating helpful and beneficial steps to understand the self and other people.

 Sleep. Having a good sleep gives both the mind the body enough time to rest. Not getting enough hours of sleep
can affect the mood of the person, the attention, and can even cause body aches.
 Exercise. A quick exercise can energize the body and helps it in maintaining its health.
 Meditate. It helps in making the mind relaxed and calm.
 Read a magazine or a book. Reading makes the person imagine the scenarios from the book and feeds the mind
which is good for the cognitive development.
 Write a journal. Maintaining a journal helps a person in keeping track of his/her thoughts, emotions, and behavior.
This helps in self-evaluation.
 Me Time is a must. Indulge yourself from time to time. Visit a museum or visit a place or friends.
 Rest during weekends. Recharge yourself by relaxing on the weekend.
 Remind yourself to smile and be happy. You can also tell yourself that you are unique and special. This creates
positive feelings and thoughts.
 REVIEWER IN INTRO TO PHILO

Lesson 1: The Bigger Picture

The Socratic Dialogue, which is considered as a form of dialectics, is a two-way process that works between two parties
discussing a central idea. It is an active process that allows people to exchange their views, beliefs, and arguments to
arrive at the truth they would believe.

The thesis is one’s prevailing idea or situation. It is our current perception of the world and all its aspects that affect us. It
is a proposition that claims to be true.

The antithesis is the idea that opposes the thesis. These are the problems we encounter in the situations we find
ourselves in.

The synthesis is the product of struggle between the thesis and antithesis. Eventually, the synthesis becomes the new
thesis which would find itself an antithesis and produce a synthesis.

Lesson 2: The Picture Within

Introspection, or the examination of oneself through the analysis of the meaning of one’s life, was given emphasis on his
philosophy.

It is during this time that the philosophical school of thought called Existentialism has become even more popular. Its
most famous proponent, Jean-Paul Sartre, was a French philosopher who is widely known for his words, “Existence
precedes essence.” He referred to “essence” as meaning or purpose. Contrary to a religious perspective wherein man
already has a purpose assigned to him by a supreme being even before he existed in the world, Sartre’s view is that man
does not have a purpose yet when he is born.

Authenticity, on the other hand, is the virtue of being true to oneself, to your own desires and character.
 REVIEWER IN EAPP
Lesson 3: Reading a Text Critically
Critical reading is a way to read more actively. It requires readers to use their critical thinking skills to question both the
text and their manner of understanding it.

Keep in mind that critical reading requires the reader to go through three steps: analyzing the text, interpreting the text,
and evaluating the text.

Reading for analysis requires a reader to break down the whole text into parts. Breaking the text down into parts
ensures that your critical thinking skills are engaged in analyzing the argument of the author.

Reading for Interpretation Once you have broken down the text for analysis, you can now attempt to understand the
ideas and sentences. As a reader, it is imperative that you be aware of the following contexts for maximum
comprehension: the text’s cultural background, the historical facts surrounding it, the author’s life experiences, the
debates within the discipline during a significant time period, and the intellectual debates of contemporary times.
 BUSINESS FINANCE

Financial Statements

Financial statements are financial records of a company reflecting its business activities and its performance. These
documents indicate the company’s revenue, cash inflows, outflows, and liabilities.

Balance Sheet

A balance sheet provides information on current and noncurrent assets and liabilities, and equity of a company at
specified period of time. It reveals what the company owns and owes. Investors commonly use this information to
decide whether they will invest in a company or not.

BALANCE SHEET FORMULA

Data from a Balance Sheet

1. Assets

The assets portion in the balance sheet shows what the company owns that are convertible into cash. There are two
types of company’s assets which are current and noncurrent.

● Current assets are company resources that can be liquidated in a year. Current assets may be cash, accounts
receivable, inventory, prepaid expenses, and short-term investments.

● Noncurrent assets are company resources that may not be converted into cash within a year. Long term investments,
property, plant and equipment, and intangible assets are examples of non-current assets.

2. Liabilities

Liabilities are debts of the company that need to be settled over periods. It can be classified as current liabilities or long-
term liabilities.

● Current liabilities are financial debts of the company that must be paid within a year. Accounts payable, short-term
loans, income taxes payable, accrued salaries and wages, and unearned revenues are current liabilities.

● Long-term liabilities are financial debts of the company that can be settled beyond a year. Five-year loans and
deferred income tax are examples of long-term liabilities.

3. Shareholder’s/Owner’s Equity

Shareholder’s or owner’s equity shows the total amount of investment of shareholders or owners in the company.
Shareholder’s equity includes common shares, preferred shares, and retained earnings. The owner’s investment shown
in the Appendix is the total common and preferred shares.

● Common shares, a popular type of investment, are given to shareholders as proof of their ownership in the company.

● Preference share is a particular type of investment that pays dividends and interest to shareholders. Preferred
shareholders do not have voting rights while common shares do. Preferred shares have a priority claim in company
earnings than common shares. Meaning, they are the first to receive a dividend.

● Retained earnings are the profit that holds onto for future use.

Income Statement

An income statement, also known as profit and loss statement, is a financial statement that shows the company's
performance within a specific time. It indicates whether the company incurred a profit or loss during a covered period.

Preparing the Income Statement

In preparing the income statement, follow the steps below:

1. List and add all the revenue items in the trial balance and indicate the total amount in the revenue section of the
report.

2. List and add all items making up the cost of goods sold.
3. Subtract the total amount of cost of goods sold from the total revenue to obtain the

gross profit (gross profit = Revenue – Cost of Good Sold ).

4. List and add all operating expenses and deduct the sum from the gross profit to get the operating income .

( Operating income = Gross profit – operating expenses).

5. To calculate the income before tax, add the operating income and other income then subtract the other expenses.

( Income before tax = Operating income + Other income – Other expenses )

6. To determine the income tax, multiply the tax rate to the income before tax

( Income tax = Income before tax x tax rate ).

7. Subtract the income tax from the income before tax to get the net income

( Net income = Income before tax – income tax ).

8. Note that extraordinary items are not included in the computation of net income.

9. Do not forget to indicate the company name, type of the financial statement, and covered period in the portion.

To get the company's net income in a specific period, subtract the total amount of expenses and losses from the total
amount of revenue and gains

Data From Income Statement

1. Revenue

Revenue is the income of the company from the sale of goods and services. It can be divided into two categories:
operating income and non-operating income.

● Operating income is sales direct from the company business core.

● Non-operating income is from secondary sources such as non-recurring gains from extraordinary activities of the
business.

2. Expenses

Expenses are the operating and non-operating costs that the company incurs to generate revenue and stay afloat.
These expenses include the cost of goods sold, operating expenses, and interest expenses.
 Net Income

Net income, also known as net earnings, is the revenue less expenses and tax. It shows the total gain or loss of
the company in a specific period.

Statement of Cash Flows

This financial statement summarizes the inflows and outflows of the company's cash because of the various activities
that occurred in the organization. This cash flow can be divided into three categories, it can be from: operating
expenses, investing activities, and financing activities.

Data from Statement of Cash Flows

1. Operating Activities

These are cash flows from business operations involved in producing and selling products and services. Changes in the
balance sheet are reflected in this portion. Administrative and maintenance expenses belong in this category.

2. Financing Activities

Financing activities involve changes in liabilities and equity of the business. Proceeds from issuing debt and
dividends paid are included in this category.

3. Investing Activities

Investing activities refers to acquiring long term investments such as capital expenditures, and proceeds from

the sales of equipment or real estate .

Financial Ratio

Ratio analysis is an effective management tool that enhances the understanding of the strengths and weaknesses of a
firm. It provides insights on the financial status of a company, being able to identify the incapacity and stability of the
business. The results of the analysis are illustrated by financial ratios.

Categories of Financial Ratios

Liquidity Ratio

Recall that liquidity refers to the ease of converting an asset into cash. The more liquid a firm, the more stable it is. It
means that there is less risk of default in paying debt and other obligations. Managers aim to improve their liquidity
because creditors examine this before agreeing to lend money.

Cash is the most liquid since it can do any business transaction anytime. Other liquid investments are marketable
securities such as forex (foreign currency), government bonds, corporate bonds, publicly traded stocks, and the like. All
these assets can turn into cash quickly, that is why they are called liquid.

Liquidity ratios are financial ratios that measure the capability of a company to convert its assets into cash and be able
to pay debts when it is due without raising its external capital .

SOLVENCY RATIO

Solvency refers to a company's capacity to address its long-term debts and financial obligations. These long-term debts
mature in more than one year and have higher interest rates. Hence, it is vital to know whether a company would have
financial strength in the long run.

Solvency is measured through the solvency ratio, which compares a firm's profitability with its long-term obligations.
More specifically, it determines whether the business's cash flow is sufficient to pay its liabilities. The main formula for
calculating a firm’s solvency ratio is:

The solvency ratio differs from the liquidity ratio, which compares the firm's current and liquid assets with its current
liabilities. The liquidity ratio determines the value of liquid assets and whether these are enough to cover the firm's
obligations that will mature in 12 months or less.

Uses of Solvency Ratio

The solvency ratio is useful for internal and external stakeholders who are interested in a company’s financial health.

Limitation of Solvency Ratio

A high solvency ratio indicates financial strength, while a low ratio may mean financial risks in the future.

Types of Solvency Ratios

Equity-to-Assets Ratio

The equity-to-asset ratio reflects how much a company's equity funds are compared to its liabilities. To compute for
equity-to-assets ratio or equity ratio, divide the total equity by the total assets as shown in this formula:

This solvency ratio shows the company's financial strength when its owners finance its resources. An equity ratio greater
than 50% implies that the company greatly relies on the funds from its owners or stockholders. It is considered a
conservative approach to maintaining a healthy financial position since a higher equity ratio indicates that there are
fewer debts to pay. Although a higher equity ratio is seen as a healthy financial standing, this may also suggest that the
management decisions are divided among the stockholders. The opposite of the conservative approach is the aggressive
approach, wherein the equity ratio is lower than 50%. It indicates that the firm relies heavily on debt financing.

Debt-to-Assets Ratio

The debt-to-assets ratio or debt ratio shows a company’s leverage. It reflects how much of the company is funded by
debt instead of assets. This solvency ratio is instrumental in gauging the company’s capacity to settle its financial
obligations through its available assets. The debt-to-assets ratio is computed by dividing the total liabilities by the total
assets, as shown in this formula:

In some cases, it is also useful to analyze the long-term-liability-to-assets (LLR) ratio, which shows the percentage of
total assets financed by long-term debt. It gives insight into the company's financial health in the long term. The formula
for calculating the LLR ratio is:

Debt-to-Equity Ratio

The debt-to-equity ratio shows the proportion of a firm's debts to its equity. This type of solvency ratio measures how
much of the debt can be paid using the company's equity. The debt-to-equity ratio is computed by dividing the total
liabilities by the total shareholder's equity, as shown in this formula:

This solvency ratio reflects the firm's financing decisions regarding its capital structure, which is a part of the financial
analyst's responsibility. A debt-to-equity ratio exceeding 100% implies that the business decided to get its funding
through debts and loans. When debts are used to sustain the business's operations, they must also pay operating
expenses (i.e., interest expense from the loan) to get financial leverage. Although it benefits the firms, it also exposes
the business to risks.