For FABM2

Charlize Anne C. Montero

Gr-12 Aloysius
1. Explain the Statement of Financial Position?
It is where the organization's assets, liabilities, and equity as of the report date are
listed. As a result, it offers a snapshot of a company's financial situation as of a particular
date.
2. List at least 5 examples that will be considered ASSETS, LIABILITIES and EXCHANGE.
Asset: cash, raw materials, accounts receivable, equipments, buildings
Liability: rent, bank dept, accounts payable, loan, tax payable
Exchange: auctions, pawn shops, over-the-counter, foreign exchange market, stock exchange
3. Explain the differences of ASSETS, LIABILITIES and EXCHANGE.
Asset: This are the items that a company owns that can provide future benefits for the
company. Assets can be tangible and intangible and is reported on a company's balance sheets.
Liabilities: Any debts owed by your business to others, including loans and unpaid bills are
referred to as liabilities. A liability exists when you owe someone money after making a promise
to pay them in the future.
Exchange: It is when two items or currencies that has the same value are traded. An exchange's
primary duty is to maintain fair and orderly trading as well as effective pricing information
distribution for all securities traded there.
4. Explain the difference of
a. Current Asset and Non-current Asset - Current assets are short term assets which the
company can use to fund day to day business operations such as inventory, cash and prepaid
liabilities. While noncurrent assets are the assets that the company can use for a long time such
as equipments, cars and buildings.
b. Current Liabilities and Non current Liabilities - Current liabilities are those liabilities that are
due a year or below such as utilities, short-term debts and rental fees. While a liability will be
considered as a noncurrent liability if it's due for a year and above such as long-term loans or
debts, income tax payable and customer deposits.