STATEMENT OF FINANCIAL POSITION

a financial report which list in detail the Assets, Liabilities of the business and show the residual interest of the owner as of specific date.

ASSETS This includeby anything owned or possessed

CURRENT ASSETS
Current Assets include cash and cash which are not restricted in use, as well as other assets readily convertible into cash, or to be sold or consumed within the normal operating cycle of the business or one year.

CURRENT ASSETS
1. Cash currencies or coins or negotiable instruments such as bank checks or postal money order used as a medium of exchanges. Two account titles could be used: Cash on Hand items in the custody of the cashier, or the owner Cash in Bank for deposit in the bank under savings or current account.

CURRENT ASSETS
2. Cash Equivalents are short term, highly liquid investments such as three month time deposit, or a three month treasury bill. Investment in Trading Securities these are highly traded in securities such as the stocks and bonds purchased by the enterprise that are to held for a short term duration.

3.

CURRENT ASSETS
4. Trade and Other Receivables are collectibles from customers, clients, and other persons for the goods , services or money given by the business. Accounts Receivable amount to be collected in the future from customers or clients
Notes Receivable amount to be collected in the future from customers supported by a promissory note.

CURRENT ASSETS
Cont Trade and Other Receivables Interest Receivable the amount of interest collectible from Notes Receivable. Advances to Employees amount of cash advance given to employee Accrued Income income earned but not yet collected as of end accounting period.

CURRENT ASSET
ContTrade and Other Receivables Rent Receivable amount to collected from tenants for space rented Dividend Receivable expected divided to received from investment in stocks.

Other receivables

CURRENT ASSETS
5. Prepaid Expenses these represent advance payments for benefits or service to be received by the business in the future. Examples are: Supplies/Prepaid Supplies/Unused Supplies Prepaid Insurance

Prepaid Rent

NON-CURRENT ASSETS
Non-current assets are those assets not considered as current assets. These include Property, Plant and Equipment (PPE) PPE or Fixed assets are assets needed to support the operation of the business over a long period of time and they are not intended for sale.

NON-CURRENT ASSETS
1. Land a lot or real estate owned and used by the business on which a building could be constructed. Building structure used to house the officer, store or factory. Office Equipment equipments being use in the officer. Ex. typewriters, computers, calculators, filing cabinets, electric fans, air-conditioners

2.

3.

NON-CURRENT ASSETS
4. Store Equipment equipments being use in the store operation. Ex. computers, cash registers, air-conditioning units, calculators, electric fans Delivery Equipment/ Transport Equipment/ Transport Vehicle - transport vehicle used by the business in their operation. Ex. trucks, cars, vans..

5.

6.

Office Furniture are furniture in the office. Ex. Tables, chairs, curtains, lighting fixtures, wall decors..

NON-CURRENT ASSETS
7. Store Furniture are furniture in the store. Ex. shelves, table, chairs, lighting fixtures, wall decors Accumulated Depreciation contra-asset account or offset account representing expired cost of the plant, property or equipment as a result of usage and passage of time.

8.

LIABILITIES
Claims against assets that is- existing debts and obligations CURRENT LIABILITIES are those debts and obligations reasonably expected to be liquidated in the normal course of the enterprise operating cycle or paid within a period of one year by the use of current assets or the creation of other current liabilities.

CURRENT LIABILITIES
1. Trade and Other Payables Accounts Payable to creditors for purchase of goods and services on credit. Notes Payable a liability supported by a promissory note issued by the business to the creditors.

CURRENT LIABILITIES
Loans Payable is a liability to pay a bank or a financing institution for amount of money by the business. Utilities Payable is a liability to pay utility companies like PLDT, MERALCO, and MWSS Interest Payable interest due on promissory notes issued.

CURRENT LIABILITIES

Salaries Payable unpaid salaries as of end of accounting period. Unearned Income revenue collected but not yet earned. Meaning, the services has not yet been rendered or the goods has not been delivered yet.

Accrued Expenses expense incurred but not paid as of end of accounting period.

NON-CURRENT LIABILITIES
Long term liabilities or obligations which are payable longer than one year 1. Notes Payable long terms debts and obligations to creditors supported by a supported by a promissory note.

2. Bonds Payable long term obligation which are evidenced by bonds issued to investors.

NON-CURRENT LIABLITIES
3. Mortgage Payable are long term obligation which are supported by collateral on real property.

OWNERS EQUITY Ownership claim on total assets. It is often referred to as the Residual Equity Owners Equity = Assets-Liabilities

Increases in Owners Equity (1) Investment by the Owner these are the assets that the owner put into the business ---The account title use in recording investment is Owner, Capital

OWNERS EQUITY
(2) Revenues are the gross increase in owners equity resulting from business activities entered into for the purpose of earning income. Generally, revenue from selling merchandise, performing services, renting property and lending money. Common source of revenue are sales, fees, services, commissions, interest, dividends, royalties and rent.

OWNERS EQUITY
Decreases in Owners Equity (1) Drawings an owner may withdrew cash or other assets for personal use. (2) Expenses are the cost of assets consumed or services used in the process of earning revenues