12 Fabm 2 Module 2 of First Quarter Olshco

Name of Student:_______________________________________
Learner’s Reference Number:_____________________________

Grade & Section:_______________________________________
Subject : FUNDAMENTALS OF ABM 2
Subject Teacher: _______________________________________
GRIT MODULE NO. 2
Date Received:______________ Date Returned: ______________
GRIT MODULE NO. 2: STATEMENT OF CHANGES IN
EQUITY AND STATEMENT OF CASHFLOWS
Greetings in the oneness of heart of Jesus and Mary!
Good day my young corporate professional!
Before we start our journey, let us request the guidance of our
Lord throughout our discussion for this module. (Pray the Prayer of
Blessed Bartolo to St. Joseph)
For this module, I would like you to read and understand these
blueprint-like standards, goals, and targets as these will be the bases
for the success of your module completion.
Learning Standards: You will understand account titles under the
assets, liabilities, and capital accounts of the Statement of Financial
Position, namely, cash, receivables, inventories, prepaid expenses,
property, plant and equipment, payables, accrued expenses, unearned
income, long-term liabilities and capital, the service income and
operating expenses of a service business as well as sales, contra sales,
purchases, contra purchase accounts, cost of goods sold and general
administrative and selling expenses of a merchandising business, the
forms of business organization, namely, single proprietorship,
partnership, and corporation, and the structure in a single
proprietorship, the components and the structure of a CFS that will
equip him/her in the preparation of the said financial report, the
methods or tools of analysis of financial statements to include
horizontal analysis, vertical analysis, and financial ratios to test the
level of liquidity, solvency, profitability, and stability of the business
that will equip the student to solve exercises and problem in preparing
financial reports such as statement of financial position, statement of
comprehensive income and changes in equity and cash flow with
financial analysis reports in merchandising business.
Copyright © 2021 APO Jose Catholic Educational System Foundation, Inc. (ACES).
All Rights Reserved. No part or portion of this module may be reproduced, copied, GRIT MODULE No. 2 in FUNDAMENTALS of ABM 2
or transmitted in any form or by any means, electronic or mechanical, without
written permission of the copyright holder. 1
Compassion Formation: You will become responsible and
accountable member of the community in advocating safety.
Now, read these learning targets. These will tell you what specific
knowledge and skills you need to master for the entire week.
Learning Targets:
1. Prepare a Statement of Changes in Equity for a single
proprietorship
2. Discuss the Components and Structures of Statement of Cash
Flows
3. Prepare a Statement of Cash Flow
You will be needing the following materials for this module:

1. Fundamentals of Accountancy, Business, and Management 2
Reference book
2. Basic Accounting reference book
3. Calculators
4. Worksheets
5. Bond papers and/or yellow pads
I am expecting that you will be able to:

1. answer all the questions and activities provided in the module in
good faith.
2. study the concepts, and practice exercises in your reference book.
3. read a lot. It will help. Make it a habit.
I am also expecting that your parent/guardian/ or whoever is

assisting you at home will (Umaasa ako na ang iyong mga
magulang, tagapag- alaga o kung sino man ang gumagabay sa iyo
sa bahay ay):
1. provide all the materials you need for this module.
(naihahanda ang lahat kinakailangan mong kagamitan para sa
modyul.)
2. assist you when you are answering the module. (gabayan ka sa
pagsasagot ng modyul.)
3. give you enough time in learning the content of the module.
(bigyan ka ng sapat na oras sa pag-aaral ng nilalaman ng
modyul.)
4. involve themselves in the conversations or activities that you
are going to do.
(isama ang magulang sa pag-uusap o mga aktibidad na iyong
gagawin.)
Required video Use of Internet:

material/s: _/__ - None
__/_ - None
___ - Kindly visit YouTube and ___ - Optional, for enrichment
click the link below: purposes
___- Teacher-made video ___- Minimal use is required
FUNDAMENTALS OF ABM 2 is not easy but with hard work,

drive and discipline, it’s “possible”. You had already your blueprint!
Let’s start!
LEGAL FORMS OF BUSINESS
Introduction
The accounting for assets and liabilities remains the same
regardless of the form of a Business Organization. What changes in
the accounting for equity? Recall the following forms of business
organization:
Form of Business Ownership Formation/
Organization Registration
1. Sole  One individual  Registered with

Proprietorship (i.e., sole the DTI
proprietorship)
2. Partnership  More than one  Formed by

(i.e., partners) contractual
agreement
 Registered with
the SEC
3. Corporation  More than one  Formed by

(i.e., stockholders) operation of law
 Registered with
the SEC
4. Cooperation  More than one  Formed in

(i.e., members) accordance with
the Cooperative
Code
 Registered with
the CDA
STATEMENT OF CHANGES IN EQUITY

The balance sheets of the different forms of Business Organization
are shown below. Notice the similarities and differences.
Exhibit 1: Sole Proprietorship
Mr. A’s Tuno-tuno BBQ
Statement of Financial Position
As of December 31, 20x1
ASSETS
Cash and cash equivalents PHP 10,000
Trade and other receivables 50,000
Inventory 80,000
Total current assets 140,000
Property, plants & equipment 260,000
Total noncurrent assets 260,000
TOTAL ASSETS PHP 400,000
LIABILITIES
Trade and other payables PHP 100,000
Total current liabilities 100,000
EQUITY
Mr. A’s, Capital 300,000
TOTAL LIABILITIES & EQUITY PHP 400,000
Exhibit 2: Partnership
ABC Partnership
As of December 31,20x1
ASSETS
Cash and cash equivalents Php. 10,000
Inventory 80,000
TOTAL ASSETS Php. 400,000
LIABILITIES
Trade and other payables Php. 100,000
EQUITY
Mr. A’s, Capital 120,000
Mr. B’s, Capital 100,000
Mr. C’s, Capital 80,000
TOTAL LIABILITIES & EQUITY Php. 400,000
Exhibit 3: Corporation
ABC Corporation
ASSETS
Inventory 80,000
LIABILITIES
EQUITY
Shared Capital 100,000
Retained Earnings 130,000
Other components of equity 70,000
Exhibit 4: Cooperative
ABC Multi-Purpose Cooperative
As of December 31,20x1
ASSETS
Inventory 80,000

LIABILITIES
EQUITY
Share Capital 120,000
Donations and grants 100,000
Statutory funds 80,000
Observe the following:

 The equity of the partnership is similar to the equity of a sole
proprietorship except that the equity of a partnership is
subdivided into the partners’ capital balances.
 The equity of a corporation is similar to the equity of a
cooperative, in the sense that both have “Share capital”
However, a peculiar characteristic of the equity of a cooperative
is that it includes “statutory funds.” Recall from our discussions
in part one of this module that a cooperative is required by law
appropriate a portion of its annual profit to some funds. This fund
is referred to as “statutory funds.”
We will only discuss the changes in equity of a sole proprietorship.
The equities of the other forms of business organization are discussed
in higher accounting studies.
THE STATEMENT OF CHANGES IN EQUITY
As the title suggests, a Statement of Changes in Equity provides
information on the changes or movements in “Owner’s equity”
during the period.
The following are transactions that cause changes in owner’s
equity during a period:
Transactions Effect on Owner’s
Equity
1. Additional investment or  Increase
contribution to the
business by the owner
2. Withdrawals or drawings  Decrease
from the business by the
owner
3. Earning of profit by the  Increase
business
4. Incurrence of loss by the  Decrease
business
Illustration:
The owner’s equity of Boy Astig Laundry Shop has a balance of
PHP 90,000 on January 1, 20x1. Transactions affecting equity during
20x1 are as follows:
a. Mr. Astig, the sole proprietorship, provided additional
investment of PHP 180,000 to the business.
b. Mr. Astig’s drawings during the period totaled PHP 70,000.
c. The business earned profit of PHP 220,000.
Requirements: Prepare the statement of changes in equity.
Solution:
Boy Astig Laundry Shop
Statement of Changes in Equity
For the period ended December 31, 20x1
Astig Capital - beg. PHP 90,000

Additional investment 180,000
Drawings (70,000)
Profit 220,000
Astig, Capital – end. PHP 420,000
Let’s try some exercises!
MULTIPLE CHOICES
Directions: Read the questions carefully and encircle the letter of
the correct answer.
1. The first line in the statement of changes in owner’s equity is
___________.
a. Profit or loss
b. Beginning capital
c. Additional contributions
d. Drawings
2. Which of the following shows a correct effect on equity?
Transaction Effect on equity
a. Additional investment Decrease
b. Withdrawals Increase
c. Profit Decrease
d. Loss Decrease
3. The amount of profit or loss appears in which of the following
financial statements?
a. Statement of Financial Position
b. Statement of Comprehensive Income
c. Statement of Changes in Equity
d. b and c
4. The heading of a financial statement most likely will not

include ____________-.
a. the name of the reporting entity
b. the title of the financial statement
c. the date of the financial statement
d. the name(s) of the business owner(s)
5. The statement of changes in equity is dated _______________.

a. as of a point in time
b. for a period of time
c. after some time
d. not dated
Entity A started with a beginning capital of PHP 180,000 on

January 1, 20x1. The following were the transactions during the year:
a. Mr. A, the sole proprietor of Entity A made additional capital
investments of PHP 360,000 to the business.
b. Total income earned amounted to PHP 1,000,000.
c. Total expenses incurred amounted to PHP 560,000.
d. Mr. A made drawings of PHP 140,000 from the business.
Requirement:
Prepare the statement of Changes in Equity using the pro-forma
statement provided below. Be sure to place a proper heading for the
statement.
PRO-FORMA STATEMENT
Mr. A, Capital - beg.
Additional Investment
Drawings
Profit (Loss)
Mr. A, Capital - end.
THE STATEMENT OF CASH FLOWS

The Statement of Cash Flows (or Cash Flow Statement) provides
information on the sources and utilization of cash during the period.
Simply stated, the Statement of Cash Flows provides information on
cash inflows and outflows during the period.
PRESENTATION OF STATEMENT OF CASH FLOWS

Cash inflows and outflows are presented in the statement of
cash flows according to what activities they have been generated for
utilization. These activities are as follows:
1. Operating Activities
2. Investing Activities
3. Financing Activities
Operating Activities
Cash Flows from operating activities result primarily from
transactions that affect income and expenses. Example include:
a. cash receipts from the sale of goods and the rendering of services.
b. cash receipts from interest income.
c. cash payments for purchases of inventory.
d. cash payment for expenses.
Investing Activities
Cash Flows from investing activities result primarily from the
acquisition and disposal of long-term assets and other investments,
like property, plant, and equipment. Examples include:
a. cash payments for the acquisition of property, plant and
equipment.
b. cash receipts from sales of property, plant, and equipment.
Financing Activities
Cash Flows from financing activities result primarily from
transactions with the owner and from the borrowings. Examples
include:
a. cash receipts from investments of owner to the business.
b. cash payments on drawings by owner.
c. cash receipts on loans.
d. cash payments on settlement of loans.
Remember the following:
Type of activity Nature of transactions
1. Operating Activities  Affect income and expenses
2. Investing Activities  Acquisition and disposal of
PPE
3. Financing Activities  Investment and drawings by
owner and loan transactions
Note: Only those transactions that affect cash are included in the
statement of Cash Flows. Transactions that do not affect cash are
excluded.
Reporting Cash Flows from Operating Activities
Cash flows from operating activities may be presented using
either Direct method, or Indirect method.
Direct Method
The direct method shows each major class of gross cash
receipts and gross cash payments.
Example: Direct Method
Cash Flows from Operating Activities
Cash receipts from sale of goods PHP xx
Cash paid for purchases of inventory (xx)
Cash paid for salary expenses (xx)
Cash paid for utility expenses (xx)
Cash paid for interest expenses (xx)
Net cash from Operating Activities PHP xx
Indirect Method
The indirect method adjusts accrual basis profit or loss for the
effect of changes in operating assets and liabilities and effects of non-
cash items.
Example: Indirect Method
Cash Flow from Operating Activities
Profit (loss) PHPxx
Non-cash items:
Depreciation Xx
Gain on Sale of Equipment (xx)
Total Xx
Changes in Operating Assets & Liabilities
Increase in Accounts Receivable (xx)
Decrease in Inventory Xx
Increase in prepared asset (xx)
Increase in accounts payable Xx
Decrease in salaries payable Xx
Net Cash from Operating Activities PHPxx
GUIDELINES: INDIRECT METHOD

1. Non-Cash Expenses
 Depreciation expense is added to accrual basis profit because
depreciation decreases accrual basis profit but does not affect
class.
 Losses on sale of property, plant and equipment are added to
accrual basis profit because losses of sale of PPE decrease accrual
basis profit but they pertain to investing activities.
2. Non-Cash income
 Gains on sale of property, plant and equipment are deducted
from accrual basis profit because gains of sale of PPE increase
accrual basis profit but they pertain to investing activities.
3. Increases in operating current assets, except cash (eg., accounts
receivable, trade notes receivable, inventory and prepayments) are
deducted from accrual basis profit.
4. Decreases in operating current assets, except cash (eg., accounts
receivable, trade notes receivable, inventory and prepayments) are
added from accrual basis profit
5. Increases in operating current liabilities (eg., accounts payable,
trade notes payable, accrued expenses, and unearned income) are
added to accrual basis profit.
6. Decreases in operating current liabilities (eg., accounts payable,
trade notes payable, accrued expenses, and unearned income) are
deducted to accrual basis profit.
Under the indirect method, the “net cash flows from operating
activities” is computed by adjusting the accrual basis profit or
loss as follows:
1. Non-Cash Expenses – added
2. Non-Cash Income – deducted
3. Increases in operating current assets – deducted (inverse
relationship)
4. Increases in operating current liabilities – added (direct
relationship)
Reporting Cash flows from Investing and Financing Activities
Cash Inflows and outflows from Investing Activities and
Financing Activities are reported on the basis of major classes of
gross cash receipts and gross cash payments (similar to direct method
of presenting cash flows from operating activities)
Illustration 1: Statement of cash flows
ABC Co.’s cash balance on January 1, 20x1 was PHP 20,000.
The following were the transactions that affected cash during the
period:
a. Collections from customers for the sale of goods- PHP 580,000
b. Cash receipt from loan obtained from a bank- PHP 180,000.
c. Cash receipt from additional investment by owner- PHP 20,000
d. Payments to suppliers for the purchase of inventory- PHP
120,000
e. Payments for employee salaries- PHP 140,000.
f. Payments for rent expense-PHP 70,000.
g. Payments for utilities expense- PHP 20,000.
h. Payment for the acquisition of equipment- PHP 200,000.
i. Cash disbursements for drawings by owner- PHP 60,000.
Requirement:
Prepare the Statement of Cash Flows. Use the direct method of
presenting Cash Flows from Operating Activities.
Solution:
ABS Co.
Statement of Cash Flows
Cash Flows from operating activities
Cash receipts from sale of goods PHP 580,000
Cash paid for purchases of inventory (120,000)
Cash paid for salary expenses (140,000)
Cash paid for rent expenses (70,000)
Cash paid for utility expenses (20,000)
Net Cash from Operating Activities 230,000
Cash Flows from Investing Activities

Cash paid for the acquisition of equipment (200,000)
Net Cash used in Investing Activities (200,000)
Cash Flows from Financing Activities

Cash proceeds from loan borrowed 180,000
Cash proceeds from investment by owner 20,000
Cash payments to owner (60,000)
Net Cash used in Financing Activities 140,000
Net increase in cash 170,000

Cash, beginning, balance 20,000
Cash ending, balance PHP 190,000
Illustration 2: Statement of Cash Flows
The comparative balance sheet and statement of comprehensive
income of ABC Co. on December 31, 20x1 are shown below:
ABC Co.
ASSETS 20X1 20X0
Cash and cash equivalents PHP220,000 PHP100,000
Trade and other receivables 65,000 60,000
Inventory 60,000 240,000
Prepaid Assets 20,000 80,000
Total current assets 365,000 480,000
Property, plant & equipment 380,000 220,000

Total noncurrent assets 380,000 220,000
TOTAL ASSETS PHP745,000 PHP

700,000
LIABILITIES
Trade and other payables PHP310,000 PHP280,000
EQUITY
Owner’s capital 435,000 420,000
TOTAL LIABILITIES AND EQUITY PHP745,000 PHP700,000
ABC Co.
Statement of Comprehensive Income
For the year ended December 31, 20x1
Sales PHP500,000
Cost of Sales (300,000)
GROSS PROFIT 200,000
Rent income 75000
Depreciation expense (120,000)
Insurance expense (60,000)
Bad- debts expense (15,000)
Loss on sale of equipment (20,000)
PROFIT FOR THE YEAR 60,000
Other comprehensive income -
COMPREHENSIVE INCOME FOR THE PHP 60,000
YEAR
Additional Information:
 Equipment with carrying amount of PHP 120,000 was sold for
PHP 100,000 resulting to a loss on sale of PHP 20,000.
 Equipment was acquired on cash basis PHP 400,000.
 The owner made total drawings of PHP 45,000.
Requirement:
Prepare the statement of Cash Flows. Use the indirect method of
presenting cash flows from operating activities.
Solution:
ABS Co.
Cash Flows from Operating Activities
PROFIT FOR THE YEAR PHP 60,000
Non-Cash items:
Depreciation 120,000
Loss on sale of equipment 20,000
Total 200,000
Changes of Operating Assets and liabilities
Increase in Trade and other receivables (5,000)
Decrease in inventory 180,000
Decrease in prepaid assets 60,000
Increase in Trade and other receivables 30,000
Net Cash from Operating Activities 465,000
Cash Flows from Investing Activities

Cash proceeds from sale of equipment 100,000
Cash paid for the acquisition of equipment (400,000)
Net Cash used in Investing Activities (300,000)
Cash Flows from Financing Activities

Cash payments to owner (45,000)
Net Cash used in Financing Activities (45,000)
Net Increase in Cash 120,000

Cash, beginning, balance 100,000
Cash ending, balance PHP 220,000
Notes:
The “Changes in operating assets and liabilities” in the Statement
of Cash Flows are computed as follows:
INCREASE
ASSETS 20X1 20X0 (DECREASE)
Trade and other 65,000 60,000 5,000
receivables
Inventory 60,000 240,000 (180,000)
Prepaid Assets 20,000 80,000 (60,000)
LIABILITIES
Trade and other payables 310,000 280,000 30,000
Recall that, in the Statement of Cash Flows:
 Increases in operating current assets are deducted, while
decreases are added (inverse relationship)
 Increases in operating current liabilities are added, while
decreases are deducted (direct relationship)
Although “bad debts” is also a non-cash expense, it is not
considered separately in the statement of cash flows. This is
because the effect of “bad debts” is automatically accounted for
in the Statement of Cash Flows by considering only the net
increase or decrease in “Trade and other receivables”.
The balance of “Cash and cash equivalents, ending” in the
Statement of Cash Flows (i,e., PHP 220,000 ) tallies with the
amount shown in the Statement of Financial Position above. If
these amounts do not tally, there is an error.
ABS Co.
Cash and cash equivalents, beginning 100,000

Cash and cash equivalents, ending PHP220,000
ABC Co.
ASSETS 20X1 20X0
Cash and cash equivalents PHP220,000 PHP100,000
The “Net increase in cash and cash equivalents” in the Statement

of Cash Flows is PHP 120,000 this is the difference between the
beginning and ending balances of “Cash and Cash equivalents.”
BC Co.
ASSETS 20X1 20X0
Cash and cash equivalents PHP220,000 PHP 100,000
220,000 – 100,000 = 120,000 net increase in cash

and cash equivalents.
ABS Co.
Net increase in cash and cash equivalents 120,000

Cash and cash equivalents, beginning 100,000
Cash and cash equivalents, ending PHP 220,000
CONSTRUCTED RESPONSE- INFLOW AND OUTFLOW

DIRECTIONS: Using the choices provided, indicate the
presentation of each of the transactions below in the statement of cash
flows prepared under the direct method.
CHOICES (Choices may be used more than once.)
A. Inflow from Operating Activity
B. Outflow from Operating Activity
C. Inflow from Investing Activity
D. Outflow from Investing Activity
E. Inflow from Financing Activity
F. Outflow from Financing Activity
G. Not reported on the Statement of Cash Flows
TRANSACTIONS:
1. Purchase of truck for cash
2. Sales of goods for cash
3. Payment of insurance expense
4. Repayment of loans payable
5. Collection of trade accounts receivable
6. Issuance of note payable in exchange of land and building
7. Cash drawings of the owners from the business
8. Payment of utilities expense
9. Sale of office building for cash
10. Payment of interest on notes payable
Try this one now!
The comparative Statement of Financial Position and Statement
of Comprehensive Income of Entity A on December 31, 20x1 are
shown below:
Entity A
ASSETS 20x1 20x0

Cash and cash equivalents 440,000 200,000
Trade and other receivables 130,000 120,000
Inventory 120,000 480,000
Prepaid assets 40,000 160,000
Total current assets 730,000 960,000
Property, plant & equipment 760,000 440,000

Total noncurrent assets 760,000 440,000
1,490,00
1,400,000
TOTAL ASSETS 0
LIABILITIES
Trade and other payables 620,000 560,000
EQUITY
Owner’s capital 870,000 840,000
1,490,00
1,400,000
TOTAL LIABILITIES & EQUITY 0
Entity A
Statement of Comprehensive Income
For the year ended December 31, 20x1
Sales 1,000,000
Cost of sales (600,000)
GROSS PROFIT 400,000
Rent income 150,000
Depreciation expense (240,000)
Insurance expense (120,000)
Bad debts expense (30,000)
Loss on sale of equipment (40,000)
PROFIT FOR THE YEAR 120,000
Other comprehensive income -
COMPREHENSIVE INCOME FOR THE
120,000
YEAR
Additional information:
 Equipment with carrying amount of PHP 240,000 was sold for PHP
200,000 resulting to a loss on sale of PHP 40,000.
 Acquisition of equipment for cash amounted to PHP 800,000.
 Owner drawings totaled PHP 90,000.
Requirement:
Prepare the statement of cash flows using the pro-forma statement
provided below. Be sure to provide a proper heading for the
statement.
PRO-FORMA STATEMENT
Cash Flows from Operating Activities:

PROFIT FOR THE YEAR
Non-cash items:
Depreciation
Loss on sale of equipment
Total
Changes in operating assets & liabilities:
Increase in Trade and other receivables
Decrease in inventory
Decrease in prepaid assets
Increase in Trade and other payables
Net Cash from Operating Activities
Cash flows from investing activities:
Cash proceeds from sale of equipment
Cash paid for the acquisition of equipment
Net Cash used in Investing Activities
Cash Flows from Financing Activities:

Cash payments to owner
Net Cash used in Financing Activities
Net increase in cash and cash equivalents

Cash and Cash Equivalents, beginning
Cash and Cash Equivalents, ending
Hooray! You did well on our activities. I hope you learned a lot about
our lessons. But wait, I want you to assess yourself using the Self-
Assessment Checklist below.
Self-Assessment Checklist
/ SKILLS
I can prepare a Statement of Changes in Equity for a single
proprietorship
I can discuss the Components and Structures of Statement
of Cash Flows
I can prepare a Statement of Cash Flow
-Therefore, I learned well and good.
-Therefore, I need more practice so I can do better next

time.
LEARNING SYNTHESIS
From this module…

Competency No.1
I was able to prepare a Statement of Changes in Equity for a
single proprietorship by:
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LEARNING SYNTHESIS
From this module…

Competency No. 2
I was able to explain the Components and Structures of
Statement of Cash Flows like:
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LEARNING SYNTHESIS
From this module…

Competency No.3
I was able to prepare a Statement of Cash Flow
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WITNESSING
As a witness of the oneness of heart of Jesus and Mary, I have a
grace-filled accountability to…
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CONNECTING WITH THE VISION AND MISSION

Inspired by the oneness of heart of Jesus and Mary, this lesson
helped me to develop
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This part is for the parent or the attending adult:

Kindly write some of your observations on your child’s learning/study
habits this week. Include also your suggestions or if you have questions,
feel free to write them on the space provided.
Observations: ________________________________________________
Question (if there’s any):
_______________________________________________________
Suggestion/s: _______________________________________________
Cellphone number: ___________________________________________
Teacher’s Remarks
Kindly consider my recommendations for your improvement in this module. I have checked the
particular points that you need to address. Thank you. 
Item
(/) Required Compliance
no.
1 Complete all required information on the front page.
2 Do not forget to pray before and after accomplishing this module.
3 Always read the expectations of this module from your parent
Take more engaged time to read the content of the entire module with a learning
4
disposition that is discipline-sensitive and success-oriented
Complete all their activity/formative assessment boxes. Redo activity/formative
5 assessment box/es on page/s
___________________________________________________________________.
6 Some parts are copied. Avoid doing this next time.
Write all your entries legibly. As much as possible avoid too many
7
erasures/alterations. Keep your module neat.
Use your own handwriting all throughout the module. I do not expect your parent or
8
guardian to accomplish this module.
9 Be careful with your spelling.
Optimize the use of your reference books/suggested materials. This surely
10
contributes to your success in this module.
Your teacher has a plagiarism checker. Please make your work original. Cite your
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references whenever applicable or necessary.
12 Let your parent/guardian engage in some conversation points found in this module.
On learning synthesis: Rewrite your learning summary taking into consideration the
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attainment of stated learning competencies.
On learning synthesis: Rewrite your Christian reflection on witnessing and
connecting to the vision and mission as an empowered Olshconian student whose
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values are anchored to Filial Compassion, Leadership and Accountability, Mary-
inspired obedience and Enduring discipleship
Participate promptly in your monitoring classes through your assigned group chat
15
and online engagement sessions.
This module will be part of your portfolio which your will submit towards the end
16
of the quarter. Keep it responsibly.
17 Over-all Rating:
Beginning-Demonstrate an initial understanding of the concepts and competencies
relevant to the expected learning.
Developing- Demonstrate a partial understanding of the concepts and competencies
relevant to the expected learning.
Proficient- Demonstrate a complete understanding of the concepts and
competencies relevant to the expected learning.
Advance- Demonstrate a sophisticated understanding of the concepts and
competencies relevant to the expected learning.
___________________________________________
Teacher’s Signature over printed name
_____________________
Date
Reference:
This module is referenced WITH PERMISSION in the Fundamentals of
Accountancy, Business and Management Part 2 of MR. ZEUS VERNON B.
MILLAN, a renowned CPA Reviewer and a brilliant author of many
accounting books.
HOME MODE REMINDERS!

1. Eat a balanced diet and on time. Vegetables, fish, and fruits are always
the best!
2. Drink plenty of water.
3. Wash your hands properly.
4. Participate in household activities. Keep your room clean and orderly.
5. Take time to have a little physical exercise like jogging, brisk walking,
running, etc. with any member of your family.
6. Connect with your friends and classmates.
7. Plan your day. Balance learning, play, and prayer and reflection time.
8. Keep safe always especially when you go out.
9. Continue to practice waste segregation.
10. Play basketball. Cook. Create artworks. Do gardening… There’s
so much to do. You have all the reasons to be productive.
11. Be updated on current events. Trust only credible sources of news
and information.

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12 Fabm 2 Module 2 of First Quarter Olshco

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Name of Student:_______________________________________

Learner’s Reference Number:_____________________________

You will be needing the following materials for this module:

I am expecting that you will be able to:

I am also expecting that your parent/guardian/ or whoever is

Required video Use of Internet:

FUNDAMENTALS OF ABM 2 is not easy but with hard work,

1. Sole  One individual  Registered with

2. Partnership  More than one  Formed by

3. Corporation  More than one  Formed by

4. Cooperation  More than one  Formed in

STATEMENT OF CHANGES IN EQUITY

TOTAL LIABILITIES & EQUITY PHP 400,000

TOTAL LIABILITIES & EQUITY Php. 400,000

TOTAL LIABILITIES & EQUITY PHP 400,000

Property, plants & equipment 260,000

Total current liabilities 100,000

TOTAL LIABILITIES & EQUITY PHP 400,000

Observe the following:

Astig Capital - beg. PHP 90,000

Let’s try some exercises!

4. The heading of a financial statement most likely will not

5. The statement of changes in equity is dated _______________.

Entity A started with a beginning capital of PHP 180,000 on

THE STATEMENT OF CASH FLOWS

PRESENTATION OF STATEMENT OF CASH FLOWS

GUIDELINES: INDIRECT METHOD

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Net increase in cash 170,000

Property, plant & equipment 380,000 220,000

TOTAL ASSETS PHP745,000 PHP

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Net Increase in Cash 120,000

Recall that, in the Statement of Cash Flows:

Cash and cash equivalents, beginning 100,000

The “Net increase in cash and cash equivalents” in the Statement

220,000 – 100,000 = 120,000 net increase in cash

Net increase in cash and cash equivalents 120,000

CONSTRUCTED RESPONSE- INFLOW AND OUTFLOW

ASSETS 20x1 20x0

Property, plant & equipment 760,000 440,000

Cash Flows from Operating Activities:

Cash Flows from Financing Activities:

Net increase in cash and cash equivalents

-Therefore, I need more practice so I can do better next

From this module…

From this module…

From this module…

CONNECTING WITH THE VISION AND MISSION

This part is for the parent or the attending adult:

HOME MODE REMINDERS!

2. Drink plenty of water.

3. Wash your hands properly.

4. Participate in household activities. Keep your room clean and orderly.

running, etc. with any member of your family.

6. Connect with your friends and classmates.

8. Keep safe always especially when you go out.

9. Continue to practice waste segregation.

10. Play basketball. Cook. Create artworks. Do gardening… There’s

so much to do. You have all the reasons to be productive.

11. Be updated on current events. Trust only credible sources of news

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