FINANCIAL STATEMENTS FOR

BUSINESS ENTERPRISES
Financial statements (or financial reports)

are formal records of the financial activities of a business, person, or other entity.

are often referred to as accounts

provide an overview of a business or persons financial condition in both short

and long term.

all relevant financial information of a business enterprise, presented in a

structured manner and in a form easy to understand.

Purposes of financial statements

to provide information about the financial position, performance and changes in

financial position of an enterprise that is useful to a wide range of users in
making economic decisions

owners and managers require financial statements to make important business

decisions that affect its continued operation

employees also need these reports in making collective bargaining agreements

(CBA) with the management, in case of labor unions or for individuals in
discussing their compensation, promotion, rankings.

prospective investors make use of financial statements to assess the viability of

investing in a business.

banks and other lending institutions use them to decide whether to grant a
company fresh working capital or extend debt securities to finance expansion
and other significant expenditures.

Business enterprises are individuals or associations of individuals that control and

use resources for a variety of purposes, specially that of yielding return to the enterprise
owner (Daughtney 1981).

Basic Types of Financial Statements for a Business Enterprise

1. Balance sheet, also referred to as statement of financial position or condition,
reports on a companys assets, liabilities, and ownership equity as of given point
in time.
2. Income statement, also referred to as Profit and Loss Statement (or a P&L),
reports on a companys income, expenses, and profits over a period of time.
3. Statement of retained earnings explains the changes in a companys
retained earnings over the reporting time.
4. Statement of cash flows reports on a companys cash flow activities,
particularly its operating, investing, and financing activities.
Business Transactions
Business transactions are events or exchanges which affect the assets, liabilities or
owners equity of an organization (Druker 1977)

Each transaction consists of debits and credits and for every transaction they must be
equal.

For Every Transaction

Value of debits = Value of Credits
A + E = L + OE + R
Where:

A = Assets

E = Expenses

L = Liabilities

OE = Owners Equity

R = Revenues

Debit Accounts (A + E) = Credit Accounts (L + OE + R)

Debits are on the left and an increase in a debt account reduces a credit
account. Credits are on the right and an increase in a credit account decreases a debit
account.
Examples:

1. When you pay with cash, you increase rent (expense) by debiting and decrease
cash (asset) by crediting.
2. When you receive cash for a sale, you increase cash (asset) by debiting and
increase sales (revenue) by crediting.
3. When you buy equipment (asset) with cash, you increase equipment (asset) by
debiting and decrease cash (asset) by crediting.
4. When you borrow cash with a loan, you increase cash (asset) by debiting and
increase loan (liability) by crediting.
Assets are economic resources acquired through a transaction or event that can
provide economic utility in future production or revenues.
Assets are classified (Julian 1974) thus:
1. Current assets are cash or other types of assets that can readily converted into
cash. These assets are expected to consume or sold within one year or within the
normal operating cycle.
Classification of current assets:

Cash on hand are currency or cash items on hand. Includes checks, bank drafts,
money orders, treasury warrants, etc.

Cash in bank are deposits in a bank which can be withdrawn or used for current
operations without any restrictions

Accounts receivable are open accounts without any formal written promise to
pay.

Notes receivable are open accounts with any formal written promise to pay.

Prepaid expenses are short term prepayments of current operating

expenditures. Ex: prepaid rent, prepaid insurance, office supplies, and store
supplies

2. Property, plant and equipment are long term or long-lived tangible assets with an
estimated life of more than one year and re acquired for the purpose of using them in
the business to generate revenues.
Classifications:

Land

Building

Equipment plant equipment, office equipment, store equipment, delivery or

transport equipment

Furniture & Fixtures

Liabilities are economic obligations resulting from past transactions or events which
can be measured in monetary terms. They are settled through the performance of
economic resources.
Classifications of Liabilities
1. Current liabilities are obligations which must be liquidated by using current
assets or the creation of other current liabilities within one year of normal
operating cycle.
Classifications:

Accounts payable refers to the indebtedness arises from purchase of goods &
services, materials, supplies in an open charge business.

Account payable non-trade are those that do not arise from purchase of
merchandise, materials, supplies in the ordinary course of business

Notes payable are short term obligations which are evidenced by promissory
notes.

Accrued liabilities are accumulated debts arising out of services rendered to

the business enterprise before the balance sheet date but payable at later time.

Unearned income includes revenues that are collected in advance but have not
been earned.

2. Long term Liabilities are obligations which are not expected to require the use of
current assets or the creation of current liabilities within one year operating cycle.

TIPS FOR BEAUTIFUL LOOK

1. Dont prick pimples.
2. Drink lots of water.
3. Keep astringents away from irritated skin.
4. Go easy on the stress.
5. Check diet. Fruits and vegetables are important for healthy skin and overall wellbeing.
6. Research on products before using them to make sure that they are right for you.
7. Do facial exercises and get facials.
8. Use olive oil to keep the skin supple.
9. Keep hands away from your face. Hands carry germs that are often transferred to
our faces.
10. Dont smoke.
11. Cut down on alcoholic beverages. They dehydrate the skin.

12. Use makeup, in moderation.

13. Wash your face at least twice a day.
14. Dont sleep with make-up on. Your pores need to breathe.
15. Take a steam bath. Its great for the skin and reduces stress.
16. Exercise.
17. Use homemade body-buffing salt, made from coarse kosher salt, safflower oil,
and a favorite essential oil.
18. Get a shower brush to reach the middle of your back. Those may reduce the
appearance of blackheads.
19. Try vitamin E oil for scars.
20. Condition the lips. Our lips are often overlooked until they begin to peel.
21. Take a skin softening milk bath.
22. Dont forget suntan lotion and sunscreen.
23. Lemon juice is excellent for embarrassing skin discolorations.
24. A full body massage is a great relaxing agent as well as a way to get circulation
flowing through your entire body to improve the skin.
25. Never scrub the skin.
26. Use soap that is skin-friendly. Some soap can be very harsh on the skin and leave
a build up that keeps your skin from looking its best.
27. Keep all beauty accessories and tools clean to reduce the risk of germs infecting
your skin.

GOOD GROOMING FOR PERSONAL

AND PROFESSIONAL DEVELOPMENT
Cosmetology is the study and application of beauty treatment. Branches of specialty
include hairstyling, skin care, cosmetics, manicure/pedicure, and electrology.

In order to help others become beautiful, a cosmetologist should have good health and
personal hygiene, and be properly groomed (Reyes 1979).

Good health is required for the successful practice of cosmetology. Without it, a
cosmetologists cannot work efficiently nor enjoy the pleasures of life.
Personal hygiene is concerned with intelligent care given by the individual to ones
health by following the rules and healthful living such as: cleanliness, correct posture,
exercise, relaxation, adequate sleep, balance diet, and wholesome thoughts.
Grooming is shown in ones personal appearance. It includes personal hygiene,
suitable or appropriate attire and neatness.
FACE CARE
Always wash face with soap and water before doing any facial cleaning or treatment.
Cleansing creams or lotion may also be used. Mud packs and honey packs are applied to
remove blemishes and tone the skin.

Skin whiteners and astringent lotions may be used to peel off the outer layer of the skin.

Pimples and blackheads may be removed with an instrument. Be sure to disinfect your
hands and theinstruments before and after removing the pimples.

Whether skin is oily or dry, there are always an equivalent lotions or creams that can be
used for face.

Various aids used in maintaining the face (Reyes 1986):

1. Face cleaners. cleansing the face is an important step in making care of your
skin. Cleansing helps to remove any excess skin oil or dirt that accumulated
throughout the day or night. Face cleansers are effective, yet gentle enough not

to disturb the skins natural moisture balance. They help to maintain a healthy
complexion, and rare a perfect addition to the face care routine.
2. Face toners. It is important to use a toner after washing the face. It helps to
return the skin to its proper pH. This is important because it can take the skin up
to six hours to return to its proper pH level without the help of a toner. Face
toners get rid of any left behind dirt and oil, and they allow moisturizers to
penetrate more effectively and so are a vital step in any face care routine.
3. Face creams. It is important to moisturize the face as part of face care routine
since restoring lost moisture and hydrating the skin helps to slow down the skins
aging process. A cream is an excellent option for a face moisturizer.
4. Face lotions. Is another great way to hydrate without being too rich. In many
cases an oily skin type may prefer a lotion over cream.
5. Face serums. Using a face serum is one of the most powerful ways to see fast
dramatic results. Serums are generally formulated with a lightweight texture so
they can penetrate quickly and effectively into the skin. Serums are excellent for
all skin types to boost skins function. It is designed for use after cleansing and
toning the face, and before moisturizing as part of daily face care routine.
6. Anti-aging face creams. For those who want to help fight the signs of aging, an
anti-aging face cream is an excellent option for a face moisturizer. There are two
anti-aging face creams, one for day (perfect by itself or under make-up) and one
for night (nourishes the skin throughout the night).
7. Face exfoliators. Are essential to keep soft and glowing. They help slough off
dead skin cells keeping pores clear. This sloughing action also smooths and
clarifies the faces complexion. An exfoliator is a great pick-me-up for tired, dull
looking skin. It is also a good way to deal with rough of flaky skin.

BASIC DRAFTING

Drafting is the primary method of communication between designers and clients,

architects, and builders, engineers and production personnel and between advertisers
and customers. A drawing, when used to show the material, dimensions, and shapes of
product, is known as a technical drawing (French 1974).
Fundamental Elements of Drafting
1. Sketching techniques

Horizontal lines are generally drawn from left to right.

Vertical lines are generally drawn from top to bottom.

Inclined lines are generally drawn in upward or downward direction.

Short lines are drawn with finger movements

Long lines are drawn with arm movements

Very long lines are drawn with segments with very small gaps of about 1/ 32/1
mm.

2. Technical terms used in connection with lines

A point indicates the position only; It has no length, breath or thickness.

A line has only one dimension and it is called length.

A straight line is the shortest distance between two points

A curve line is a line no part of which is straight

Parallel line are those which are equal distance apart through their entire
length.

Perpendicular lines are those which intersect with an angle of 90 degrees.

when two lines cross each other they are said to intersect and the point at
which they meet is the point of intersection.

3. Arcs and Circles.

A circle is a plane figure enclosed by curved lines

The distance around circle is a circumference.

The diameter of the circle is a straight line passing through the center of the
circle and terminated at both ends by the circumference.

Radius is one-half of the diameter

One fourth of the circle is a quadrant.

One half of the circle is semi-circle.

Tangent is a line that touches only one point of the circles circumference.

Ref: TLE reviewer for LET; Mark Raguindin, MAEd

BASIC SKILLS IN BAKING

Baking is the process of cooking by dry, indirect heat usually in an oven and is
considered the best method of cooking to retain the nutritution value of food. The
appropriate mixing method applied for biscuit-making is called the pastry
method (Rojo 1986).
Basic Baking Ingredients
1. Flour is the main ingredient or framework of baked products.
Kinds of Wheat flour

Rice flour is made into cookies

Soybean flour is made from soy beans using the same procedure in making rice
flour used for baking cookies, biscuits, pastries & cakes.

Cornmeal is coarsely ground flour used in making native cookies, quick breads
& cakes.

Cassava flour (tapioca) is made from dried slices of cassava roots which are
ground finely.

Sweet potato flour are sliced thinly, dried & ground finely to produce the flour.

Sago flour is made from the roots of sago plant

2. Water the cheapest liquid in baking, is indispensable in transforming the protein of

the flour into gluten form.
3. Milk usually pasteurized, is commonly used in baked products.
4. Sugar is made from either sugarcane or sugar beets, It may be: Refined best
variety for most light cakes; Brown added color to baked products, is less
refined; Honey is twice as sweet as sugar; Molasses is a by-product in the
manufacture of sugar from sugercane
5. Shortening refers to the fat or oil used to tenderized baked products or to fry food.
It nay be: Hog fat (lard) is best for bread, biscuits, dip crust and few types of
cake; Butter -is used mainly for cakes and cookies; Coconut oil is taken from the
meat of coconuts.
6. Egg can provide the cake mixture with structural framework. Egg yolk will serve as
an emulsifier in order to make mixing of both liquid possible.
7. Leavening agents make baked products light and porous
8. Salt is used to control and regulate the fermentation process in bread making
9. Flavors and spices are extracts from plants, seeds and aromatic vegetable
products which usually available in liquid or finely ground state.
10. Cocoa and chocolate are widely used in the production of cakes and pastries.
Cookies are tiny cakes often served as snacks or at festive occasions.
Classifications of cookies (Navaro 1985):
Drop cookies are made from butter dropped onto the baking sheet from a teaspoon

Bar cookies are made by spreading the dough on a pan, sliced into pieces and
then baking

Model cookies are those which are formed into designed shapes with the
hands.

Refrigerator cookies are made from the dough which must be chilled in the
refrigerator before baking

Pinwheel is a cookie in which two portions of dough of contrasting cookies are

rolled cut to the same size

Press cookies are formed with a cookie press

Ingot cookies are made from flour, liquid, baking powder, sugar, shortening
and flavoring.

Pastry Includes a variety of products made from dough containing medium to a large
amount of fat. Ingredients include flour, fat, water, salt.

Ref: Reviewer in TLE for LET, M.Raguindin, MAEd.

COOKING TERMS (BENNION 1975)

BAKE (paghuhurno) to cook in oven.
BARBECUE (pag-iihaw) to cook piece of meat by direct heat over coals in a grill,
in an oven or under a broiler.
BASTE to moisten food while it is being baked to prevent it from drying out with a
mixture like marinade and others.
BLANCH or SCALD (pagbabanli) to pour boiling water over food or dip the food
into boiling water and then into cold water to prevent it from being overcooked.
BOIL to cook in liquid until bubbles appear, rise and break at the top
BROIL to cook by direct hear over charcoal or electric grill especially fish, seafood,
vegetables.
BRAISE to brown meat or vegetables in fat and simmer in a small amount of
water.
FRY (pagpriprito) to cook in hot oil without cover.
FRICASSEE to cook meat in shortening and sauce mixture.
MELT (pagtunaw) to change a solid substance into liquid by heating.
POACH to cook foods in hot liquid just below the boiling point, i.e., poached egg.
ROAST (paglitson) to cook meat or poultry uncovered in oven without any added
moisture.

SAUTE (paggisa) to cook garlic, onions, pork and seasoning in small amount of fat
with vegetable or noodles added.
SCALD in milk to heat liquid like milk in the upper part of double boiler until tiny
bubbles appear around the edge. Heating indirectly will prevent scorhing of milk
that has adhered to the pan.
STEAM (pagpapasingaw) to cover tea leaves with boiling water and allowed to
stand, to extract the flavor, color and aroma from he leaves.
SIMMER (pagpapakulo ng atay-atay) to cook just below the boiling point.
Reference: A reviewer in TECHNOLOGY AND LIVELIHOOD EDUCATION for the
LICENSURE EXAMINATION FOR TEACHERS, Mark Raguindin Limon, MAEd.

FOOD SELECTION AND PREPARATION

TERMS (BENNION 1975)
BAKE to cook in an oven.
BEAT (pagbati) to make mixture smooth and light by lifting food over and over.
BLEND (paghalo) to mix two or more ingredients until one ingredient cannot be
distinguished from the other.
BREAK (pagputol) to divide into pieces.
CHOP (pagtadtad) to cut into small pieces.
CREAM (pagpalambot) to rub, mash or work shortening against the side of a bowl
with the back of wooden spoon until it is smooth and creamy.
CUBE (malalaking cuadrado) to cut into square pieces of uniform length, width
and thickness.
DICE (padhiwa ng maliliit na cuadrado) to cut into smaller cube pieces of uniform
size and shape.
DREDGE to coat solid foods with dry ingredients such as flour, bread crumbs or
sugar by springkling, dipping or rolling it into one of the ingredients.
FLAKE (paghimay) to separate fish into pieces by means of the fingers.
FOLD to add beaten egg whites or slipped to a mixture without losing what has
been beaten into them like air.
GRATE (pagkudkud) to cut into fine pieces by rubbing against a grater in a circular
or back and forth motion.
JULIENNE to cut carrots, sayote, potatoes, etc into thin, match-like strips.
MARINATE (pagbabad) to let stand in French dressing or an oil-acid mixture to
add flavor like in barbecue.

MASH (pagdurog ng pino) to press food from small pieces into a pulp with an up
and down motion with a masher or beating action of a fork.
MINCE to cut garlic, ginger, onions, etc. chop into tiny pieces.
PARE (pagtalop) to cut off outer skin or rind with a knife.
PEEL (pagbalat) to pull off outer skin by means of the fingers.
PUREE to rub food through a sieve or blender to make a smooth semi-liquid
mixture for use in soup or sauces or as food for babies or for juices
SCRAPE (pagkudkod) to remove the skin of carrots, potatoes, etc. by rubbing it
with a sharp edge of a knife.
SLICE (paghiwa) to cut accross into flat pieces.
SOFTEN to cream butter, margarine or shortening until smooth and creamy or let
it stand at room temperature until it becomes creamy.
STIR (paghalo) to mix the ingridients in a bowl by circular movements of a our
and salt overspoon.
SPRINKLE (pagbugbod) to scatter sugar, flour and salt over food.
WEDGE to cut into the shape of a wedge each piece thick at one end and thin at
the other.
WHIP to beat rapidly to incorporate air and increase volume.
Reference: A Reviewer in Technology and Livelihood Education for Licensure
Examination for Teachers, Mark Raguindin, MAEd