Equity is residual interests

Paid/Earned

Collected/used

Cash, Tools, Equipment, Building and Land.

What are the 3 elements of Statement Financial of Position?

Assets is what you call " What you owe"

Refers to a two-column format presentation of the SFP.

Liabilities that fall due within the normal course of business or one year from the reporting date whichever is longer.

Notes Payable , Accounts Payable, Accrued Liabilities, Unearned revenues

Loans Payable, Mortgage Payable

This pertains to claims of the business from customers

for sales of products or rendering services.

This pertains to debt secured from a financial institution by mortgage or lien on real estate of business or its proprietor.

Comprehensive Income is defined by the International Accounting Standards as the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

There are four approaches in the presentation of the Statement of Comprehensive Income

This is a deduction (except for land) form

property, plant, and equipment.

This type of statement list the three different sections (Assets, Liabilities, and Equity) one on top of the other.

Profit increases capital while loss decreases capital

Comprehensive Income is composed of income and expenses that are not presented as profit or loss as required by the Philippine Financial Reporting Standards.

A liability is cured to realize a transfer of economic benefits.

What is the Accounting Equation?

All are examples of current assets except one :

Owner’s primary purpose is to minimize the use of capital by gaining profits.