@boringwriter 9 November 2021 more from that month

[I feel bad to myself. My efforts are wasted, so I will just post this here. I thought that the PT are the things you have learned, but I was wrong. Anyway, here is the draft that I worked for over three hours.] Going back to the previous semester, we have learned the overview of an accounting which we should know. Moreover, we also tackled it's definition, the diferent classification of financial statements, how we will analyze it, solving for the trial balance, putting it on the posting entries, and the like. But this time, we are going to in-depth to the financial statement's elements, how to construct it, and how we will analyze. Without further introduction, let's go. Basically, we have learned how to prepare the four financial statements stated in the module, and it's elements. The first financial statement that I will discuss is the Statement of Financial Position. This is type of financial position where it shows the total net worth of assets, liabilities, and owner's equity in the specific period or date. In fact, the three elements that I have mentioned is called permanent accounts. If you are curious why we still need to do it, it is essential as we can determine it's liquidity, financial flexiibilty, and solvency. It also has two formats which we can utilize which are the report format and the account format. The second statement that I will discuss is the Statement of Comprehensive Income. It is the result of the company's operation in the specific period of time which it shows how much gains or losses you got. On the other hand, it is also composed of temporary accounts which is contrast to the first discussed financial statement. Anyway, temporary statement is composed of two sections which is the income and expense. As regards to it's form, it is separated into two. The first one is the natural form or single-step statement. On the other hand, the second one is the functional form or multi-step statement. If you will compare them visually, you can conclude that the first one is way simpler rather than the other. This financial statement can be applied both in service and merchandising business. Based on my observation, the merchandising business has more complex financial statements because it's centered in inventories, while the other business sector is not since it only tackles the service income that the company will acquire. Apparently, the company can also track their owner's equity which is intended for sole proprietorship which is what you called Statement of Changes in Equity for Sole Proprietorship. It shows the summary of changes transpired in the Capital or Owner's Equity account. As we all know, if the form of business is single proprietorship, then the owner is the proprietor. Not only that, you can also glance here the other forms of business and it's owners. The last financial statement that I will discuss is the statement of cash flow. It provides about the cash receipts and cash payments of an entity during a period. Additionally, it classifies the cash outflows and inflows into three cash flows which is the operating, financing, and investing activities. If we will distinguish them manually, operating activities is directly related to the daily money-maker activities of the business while the investing activities are supposed to be related with the purchases of non-current assets such as equipments. The last but not the least on the three components of cash flows is the financing activities. It is the type of cash flow where it includes activities in getting resources from owners and investors.