Fundamentals of Accountancy, Business, and Management Part Two (FABM2)

Overview and Purpose

• Instructor: Kevintroy M. Chua, CPA
• Channel: Sir Chua's Accounting Lessons PH
• Grade Level: 12 (First Semester)
• Prerequisite: Fundamentals of ABM Part One (FABM1)
• Mode of Learning: Online, blended learning (introduced during COVID-19 pandemic)

Goals

• Understand the purpose of FABM2
• Enumerate lessons and topics in FABM2

Review of FABM1

• Review all previous lessons in Fundamentals of ABM Part One (Videos 001 to 033) on the channel
• Important for foundational knowledge

FABM2 Lesson Distribution

• Main Topics:
  • Constructive Accounting
  • Industry-Based Learning

Constructive Accounting

• Financial Statements Preparation:
  • Balance Sheet
  • Income Statement
  • Capital Statement
  • Cash Flow Statement

Industry-Based Learning

• Financial Statements Analysis:
  • Analysis Techniques: Horizontal, Vertical, Ratio Analysis
• Banking:
  • Bank Transactions
  • Bank Reconciliation Statements
• Basic Taxation:
  • Basic principles of taxation
  • Monthly and annual income tax computation
  • Introduction to Value-Added Tax (VAT)

Detailed Topics

1. Statement of Financial Position (Balance Sheet)

• Key Elements:
  • Assets (Current and Non-Current)
  • Liabilities (Current and Non-Current)
  • Capital
• Preparation Forms:
  • Account Form
  • Report Form

2. Statement of Comprehensive Income (Income Statement)

• Types:
  • Single Step (Service Companies)
  • Multi-Step (Merchandising Companies)
  • Functional Presentation
  • Natural Presentation

3. Statement of Changes in Equity (Capital Statement)

• Business Organizations:
  • Sole Proprietorship
  • Partnerships
  • Corporations

4. Statement of Cash Flows

• Preparation Methods:
  • Direct Method
  • Indirect Method (Intermediate level, not covered in senior high)

5. Financial Statements Analysis

• Analysis Types:
  • Horizontal Analysis
  • Vertical Analysis
  • Ratio Analysis

6. Bank Documents and Transactions

• Banking Concepts:
  • Bank Accounts
  • Bank Transactions (Deposits, Withdrawals)
  • Check Preparation
  • Reading Bank Statements

7. Bank Reconciliation Statement

• Reconciliation Methods:
  • Adjusted Balance
  • Book Balance vs. Bank Balance
  • Book to Bank Method

8. Basic Income and Business Taxation

• Tax Principles:
  • General Principles
  • Monthly Compensation Tax
  • Annual Income Tax Calculation
  • Value-Added Tax (VAT) introduction

Next Lesson

• Topic: Statement of Financial Position

Contact Information

• Email: kevintroy.ochua1994@gmail.com
• Instructor: Kevintroy M. Chua, CPA
• Channel: Sir Chua's Accounting Lessons PH

To God be all the glory, honor, and praise.