BUSINESS MATH INTANGIBLE ASSETS

Four Financial Statements Franchise

1. Balance Sheet / Financial Position Copyright
• assets Trademarks
• liabilities Patent
• capital Software
2. Income Statement LIABILITIES
• revenue or income • Unearned Revenue – an income
collected by the business in advance
• expenses
whose product or service is yet to be
– Gross Income (total revenue, provided.
WITHOUT deduction)
1. Current Liability
– Net Income (Revenue less Expense; R
• Accounts Payable
> E)
• Notes Payable
– Net Loss (E > R ; Expense is greater
than Revenue) • Salaries Payable
3. Statement of Owner’s Equity • Utilities Payable
• capital and drawing in a CERTAIN • Interest Payable – Interests
PERIOD accumulated from debts
4. Statement of Cash Flow 2. Long-term Liability
• Received cash; on-going operations • Mortgage Payable
• Cash receipts and payments • Loan Payable
ASSET • Bonds Payable
CURRENT ASSETS CAPITAL
1. Cash – A medium of exchange that is • Owner’s Capital –
in currency form. invested/investment
2. Account Receivable – Money owed • Owner’s Drawing – account used for
by the customers or debtor acquired assets withdrawn by the owner for
through service personal use.
rendered and goods purchased on REVENUE
accounts
• Sales
3. Notes Receivable – debts endorsed
• Commissions
through promissory notes.
• Service Revenue
FIXED ASSETS
• Rent Income
Land
• Interest income
Buildings
EXPENSES
Vehicles
• Salaries Expense
Office/ Store Supplies
• Utilities Expense
Office/Store equipment and
machineries • Rent Expense
Furniture and Fixtures • Bookkeeping – recording all the
transaction in a systematic manner
 • Classifying – grouping similar and BLESSING NOTES
interrelated business transactions by
• Statement cash flows, the information
posting it to the ledger
concerning the cash inflows and
• Summarizing – preparing financial outflows
statements
• Closing entries are made, in order to
• Journalizing – recording business transfer net income/loss and owner's
transaction in a book of original entries drawings to the owner's capital account
called a journal
• Trade companies – business to receive
• Posting –transferring entries from goods and services before paying
journal to ledger.
• example of external finance – Bank
• Adjusting entries are used to: loan

a. close the books • Capital gain – shareholder sells his

shares for more than he paid
b. record accruals
• point at which the level of sales of a
c. correct errors
business exactly equals its costs –
• Reminders: Break-even point

– Pag column ang tinatanong, it’s either DEBIT • Current Assets-Current Liabilities –
or CREDIT lang Working capital

– Pag ang transaction nag end sa “on account or • does not appear in a Balance Sheet –
on credit” ang credit side ay Accounts Depreciation Expense

Payable pero pag wala, automatic ang credit • Net Income or Profit results from,
side ay Cash revenues exceeding expenses

– Lahat ng pumasok DEBIT, lahat ng lumabas • Assets are normally recorded at – cost
CREDIT
• Requires 15 months of payment –
– I-analyze maigi ang transaction bago mag Long-term liability
answer 
• Best applies to current asset –
• Reminders: Accounts receivable

– Pag gross sales, walang bawas ang pipiliin • Non-current assets – Properties and
equipment
– Pag net sales naman ibawas ang expenses
• Received in exchange for delivery of
– Pag depreciation value, if given na yung value, goods – Income
iconvert ang percentage into decimal, then
multiply sa amount • Decreases in Owner’s equity –
Expenses
– If per yearly or monthly ito ang formula; total
amount – depreciation value time (months if • Resources owned – Assets
needed)
• Acquired assets through obligations –
• Reminders: Liability

– Pag kukuha ng percentage, mauuna ang maliit • Business owned will be due not to
na value sa mas malaking value, kaylangan naka exceed a year – Current Asset
decimal muna then multiply sa 100 para maging
• Requires prompt payment – Current
whole number, kapag dinivide mo at naka
Liability
whole number agad, baliktarin mo yun pag
divide dahil baka nagkamali ka lang 

– Pag wala yung exact answer, hanapin ang

pinaka malapit
COMPUTATION D. ₱14,000

1. Jeff receives P2,500 from her parents 56,000,000 – 42,000,000

as monthly allowance. He spends 3/5
= 14,000,000
for dormitory fee and utilities, 1/5 for
her other needs and saves the rest. 5. Niko's food stall has costs of ₱2,900.
How much does she save? Her total food sales are ₱11,600. What
percent of her food sales do the food
A. P1000
costs represent
C. P850
A. 20%
B. P750
B. 25%
D. P500
C. 27%
3/ 5 + 1/5 = 4/5
D. 30%
2500 X 4/5 or 2500 / 5 = 500
2,900 / 11,600
500 X 4 = 2000
= 0.25 X 100
2500 – 2000 = 500
= 25 %
D. 500
6. Brea needs 250 cookies for a buffet.
2. Christine is a saleslady in Miniso She will make oatmeal raisin,
Department Store. She received a macaroons, and chocolate chunk
salary of P 10,000 a month plus a cookies. She wants 25% of the cookies
commission of 1% on all her sales. Last to be oatmeal raisin and 15% of the
month, her total sales was P35,000. cookies to be macaroons. How many
How much did she earn for the month? chocolate chunk cookies must Brea
bake?
A. P 10,035.00
A. 150
B. P 10,003.50
B. 125
C. P 10,350.00
C. 140
D. P 10,530.00
D. 100
1 % / 100 = 0.01
25 % oatmeal
35000 X 0.01 = 350
+ 15 % macaroons
10000 + 350 = 10, 350
40
C. P 10,350.00
100 % - 40 % = 60 %
3. If a skirt marked down 25%, what
will the purchase price be? 250 (total cookies)

A. P25.00 250 * 0.60

B. 75% of its original price = 150

C. 50% off 7. A customer places a special order

through 480 Furniture Store. The list
D. P75.00
price in the manufacturer's catalog is
B. 75% of its original price ₱1,600. 480 Furniture receives a 35%
trade discount. What is the net price
4. Find the profit of Ronnel's water for the furniture order?
refilling business with revenue of
₱56,000,000 and costs A. ₱560

of ₱42,000,000 B. ₱1,535

A. ₱14,000,000 C. ₱1,565

B. ₱140,000 D. ₱1,040

C. ₱1,400,000
Shortcut in getting net price in Trade
Discount:

Subtract the given discount from 100%

then multiply to the given amount

100% - 35% = 65%

1,600 x 0.65 = 1,040

8. Ron's Manufacturing offers

discounts on most of its products.
What is the trade discount rate on an
item with a list price of ₱16.79 and a
net price of ?₱2.42?

A. 22%

B. 26%

C. 54%

D. 74%

Trade Discount = List Price x Trade

Discount rate

Net Price = List Price – Trade Discount

TD = 16.79 x 2.42

= 40.63

But, in the given option, 26% is nearest

to the correct answer.