FUNDAMENTALS OF ACCOUNTING, BUSINESS AND MANAGEMENT 2

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Make Sure Your Sage 300cloud Financial Statements Balance!

SUBJECT DESCRIPTION:

The course deals with the preparation and analysis of financial statements of a service business and merchandising business using horizontal and vertical analyses and financial ratios. Knowledge and skills in the analysis of financial statements will aid the future entrepreneurs in making sound economic decisions.

OBJECTIVES:

The learners are able to…

1. Solve exercises and problems that require preparation of an SFP for a single proprietorship with proper classification of
accounts as current and non-current using the report form and the account form

2. Solve exercises and problems that require preparation of SCI for a service business and a merchandising business

3. Solve exercises and problems that require preparation of an SCE for a single proprietorship

4. Solve exercises and problems that require preparation of a CFS

5. Solve exercises and problems that require computation and interpretation using horizontal analysis, vertical analysis, and
various financial ratios

6. Using the downloaded sample financial statements, he/she performs horizontal and vertical analysis, computes various
financial ratios and interprets the level of liquidity, solvency, stability, and profitability of the business

7. Share samples of bank account forms and documents in class and discuss their uses and importance

8. Accomplish the BIR (Bureau of Internal Revenue) forms

COURSE CONTENT:

Lesson 1: Statement of Financial Position ( SFP )

  1. Define the term Statement of Financial Position and introduce the term Permanent Accounts
  2. Differentiate the Report Form and Account Form
  3. Group accounts under Current Assets, Non-current Assets, Current Liabilities, Non-current Liabilities and Owner’s Equity
  4. Difference of the Statement of Financial Position of a Service Company and of a Merchandising Company
  5. Different parts of the Statement of Financial Position

Lesson 2: Statement of Comprehensive Income (SCI)

  1. Define the term Statement of Comprehensive Income and introduce the term Temporary Accounts
  2. Differentiate the single-step and multi-step format of the SCI
  3. Difference of the Statement of Comprehensive Income of a Service Company and of a Merchandising Company
  4. Different parts of the Statement of Comprehensive Income

Lesson 3: Statement of Changes in Equity (SCE)

  1. Define the term Statement of Changes in Equity and differentiate the forms of businesses (single/ sole proprietorship, partnership and corporation)
  2. Differentiate the initial investment from the additional investments and define withdrawals
  3. Different parts of the Statement of Changes in Equity

Lesson 4: Cash Flow Statement (CFS)

  1. Define the term Cash Flow Statement
  2. Differentiate the Direct and Indirect Approach of the CFS
  3. Point out different parts of the Cash Flow Statement

Lesson 5: Analysis and Interpretation of Financial Statements 1

  1. Financial statement (FS) analysis
  2. Horizontal analysis
  3. Vertical analysis

Lesson 6: Analysis and Interpretation of Financial Statements 2

  1. Ratio analysis
  2. Profitability ratios
  3. Operational efficiency ratio
  4. Financial Health Ratios

Lesson 7: Accounting Books – Journal and Ledger

  1. The General Journal and Special Journal
  2. The importance of using a journal
  3. The Use of General Ledger
  4. Determining the Balance of a T-Account

Lesson 8: Basic Documents and Transactions Related to Bank Deposits

  1. Discuss the types of bank accounts normally maintained by a business and differentiate
  2. Preparation of bank deposit and withdrawal slips
  3. Identify and prepare check (cheque)
  4. Identify and understand the contents of a bank statement

Lesson 9: Basic Reconciliation Statement

  1. Nature of Bank Reconciliation Statement
  2. Identify common reconciling items and describe each of them.
  3. The Bank Reconciliation Process

Lesson 10: Income and Business Taxation

  1. Principles of Taxation
  2. List of sources of gross income: (NIRC 1997 Chapter 6 Section 32 A)
  3. Compensation Income
  4. Business Income
  5. Taxable Income and Tax Due
  6. Preparing Tax Forms using eBIRForms software

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