FABM 2 Midterm Examination Set B.

It was previously referred to as Balance Sheet.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Equity

• Statement of Cash Flows

Financial Statement that report the result of operation of the business for one accounting period.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Equity

• Statement of Cash Flows

It is the Financial Statement that explains the net change in cash for the year.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Equity

• Statement of Cash Flows

Compute of the year end balance of equity accounts.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Equity

• Statement of Cash Flows

Used by trading operation and recognized when goods are delivered.

• Service income

• Sale Revenue

• Sales Return

• Net Sales

IT IS COMPUTED AS GROSS SALES – SALES RETURNS AND ALLOWANCES – SALE DISCOUNT (NET SALES = GROSS SALES – SALES RET. AND ALLOW. – SALES DISCOUNT)

• Service Income

• Sale Revenue

• Sale Return

• Net Sales

Are resources with future benefits that are within the control of the company.

• Assets

• Liabilities and Equity

• Net Income

• Revenue

These are the obligations that the company is required to pay.

• Assets

• Liabilities

• Expenses

• Equity

It is the simplest form of a business organization.

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

It is the business owned by two or more owners.

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative