Fundamentals of Accountancy, Business and Management 2

Week 2: January 10-13, 2023

Carry over Lesson Plan dated January 4 – 6
Fundamentals of Accountancy, Business and Management 2
Learning Targets:
● I can prepare the statement of financial position of a single proprietorship; and
● I can prepare a statement of financial position using the report form and the account from the proper classification of items as current or
non-current.

Interaction
We are dealing with Statement of financial position
 The teacher will prepare the statement of financial position of a single proprietorship.
 The students will prepare a statement of financial position using the report form and the account from the proper classification of items as
current or non-current The teacher will give examples of how fairness, accountability is practiced in business and non-profit organizations.
 The students will give an example of assets, liabilities and equity
Practice
Identification Type
DIRECTIONS: Identify what is being asked on the following question. Choose your answers on the box.

ASSET LIABILITY EQUITY

1.  Machinery 6.  Raw materials and inventory

2. Rental fees 7.  Unpaid bills

3.   Preferred stock 8.  Capital

4. Retained earning 9.  Common stock

5. Bank loans 10.  Mortgages

 The students will write their answer on a one clean sheet of paper.
Enrichment
Critical Thinking!
How many methods are there for presenting liabilities in preparing a simple statement of financial position? How these methods important in
real life situation?
 The students will write their answer on a one clean sheet of paper.
Values Integration
Generally, the statement of financial position follows what is known as the ‘accounting equation.’ This is written as assets = liabilities + equities. For
the statement of financial position to be considered valid it must be balanced. This means that the company’s assets must equal the sum of its
liabilities and equities.

Collaboration!
Instructions: The class will be divided into two groups. Give the current and non-current examples of assets and liabilities. Their answer is as a
group with full of cooperation and collaboration not an individual answer.

 The students will write their answer on a one clean sheet of paper

Evaluation
What have you learned so far? Answer the following statements.

1. What is accounting?

a. Method of reporting financial activity of a business.

b. Written reports that describe the financial health of a company.
c. Professional who produces and examines financial records, prepares financial reports and tax returns, etc.
d. Anything value owned by the business. 5. What type of account is Accounts Receivable?

2. What type of account is Cash in Bank? 3. What a.

typeRevenue
of account is Office Equipment?
b. Asset
a. Revenue b. Asset a. c.Revenue
Liability c. Asset
b. Liability d. Owner’s Equity
b. d.Liability
Owner’s Equity d. Owner’s Equity
4. What type of account is Accounts Payable?
 a. Express
b. Asset
c. Liability
d. Owner’s Equity

6. What type of account is Revenue? 7. What type of account is rent expense?

a. Express a. Revenue
b. Asset b. Asset
c. Liability c. Liability
d. Owner’s Equity d. Owner’s Equity

8. The Accounting Equation must always be in balance? 9. Which of the following is NOT a part of the
definition of accounting?
a. True
b. False a. Classifying
b. Concluding
c. Summarizing
10. Which of the following statements is incorrect? d. Recording
a. Assets – Capital = Liabilities
b. Liabilities + Capital = Assets
c. Assets - Liabilities = Capitals
d. Liabilities + Assets = Capital
Point system:
2 points: for the correct answer
Total points: 20 points

PERFORMANCE TASK:
Instruction: Give your own definition of the following words. Then distinguish between assets, liabilities with equity.
1. Accounts payable - .
2. Cash - .
3. Trading securities - .
4. inventories - .
5. Interest payable - .
6. Other accrued expenses - .
7. Cash equivalent –- .
8. Interest receivable – - .
9. Liabilities – - .
10. Assets - .

Point system:
2 points: for the definition
Total points: 20 points