CAMOTES HILLSIDE ACADEMY, INC.
Western Poblacion, Poro, Cebu
Daily Learning Plan
DLP No.:
9
Learning Area:
Fundamentals of
Accountancy, Business, and
Management
Grade Level:
Quarter:
Duration:
Date:
12
I
180 hours
January 2024
Code:
ABM_FABM12-lg-h-12
Learning Competency/ies:
Interpreting and Analyzing Financial Statements
Key Concepts / Understandings to be
Developed
The students demonstrate an understanding in Interpreting and Analyzing Financial Statements.
Domain
OBJECTIVES:
Remembering
Define the measurement tools in accounting.
Understanding
Explain the importance of measurement tools in business.
Applying
Demonstrate the use of accounting measurement tools on specific business situations
Knowledge
Analyzing
Skills
Evaluating
Creating
Attitude
Value the importance of Interpreting and Anayzing Financial Statements on
businesses.
Valuing
Values
Organization
2. Content
Measurement Tools in Accounting
3. Learning Resources
References
Materials
Quipper
file:///C:/Users/HP/Desktop/CHA%20FILES/MY%20SUBJECTS/ABM/unit%205/lesson%201/FAB
M%202%20SG%2012%20Q1%200501.pdf
manila paper, permanent marker, study guide, laptop, powerpoint presentation
4. Procedures
4.1
Introductory
Activity
Opening Prayer
The teacher will assign one student to lead the opening prayer.
Checking of Attendance
Calling the names of the students one by one.
Review: The teacher will review Lessons on Unit 4 topic 1 and 2.
Motivation: Answer this activity with a group, preferably with four members.
WORD SEARCH
30
minutes
Choose 3 words from the word search above and elaborate to the class your
understanding about your chosen words.
4.2
Activity
This activity is composed of 4 members. Analyze the situation and answer the questions
that follow.
Paul's Financial Growth for the Year
Paul has finally closed his books for the year ended 2021 and is very happy to see the
audited financial statements furnished to him by the external auditors. The balance sheet
shows the following accounts for the years 2020 and 2021, respectively:
From the supplementary report given by the accountant, Paul could measure the growth
of assets and liabilities for the year 2021. He was able to establish that the total assets
increased by a total of P21,000.00, and the total liabilities decreased by P45,000.00.
Guide Question:
1. What accounts increased for Paul's 2021 operations?
2. What does the decrease in total liabilities mean for Paul's business?
25
4.3
20
4.4
3. Why is it important to measure such an increase or decrease in business?
minutes
Analysis
minutes
Abstraction
The students will orally answer the guide question on the activity.
(Integrated HOTS)
MEASUREMENT TOOLS IN ACCOUNTING
Once a company's financial statements are available for use by its
intended users, the next step is to measure the results of
operations based on the data presented in the financial
statements for the period. This process is done using
measurement tools typically utilized in accounting.
Accounting data reflected in the financial statements will only be
useful once an understanding of how to interpret and analyze
them is attained. Interpretion and analysis of the financial
statements involves analysis of data presented in three primary
financial statements.
Measurement tools are metrics used to measure or evaluate the
productivity and performance of a business. These tools are used
to assess information reported on the balance sheet, income
statement, and cash flows.
60
minutes
TYPES OF MEASUREMENT TOOLS USED IN ACCOUNTING
Liquidity measures the ability of a business to meet and satisfy
demands for cash arising from currently maturing obligations
(Dauderis and Annand 2017).
Assets are usually presented in terms of liquidity. We call such a
presentation the order of liquidity, this is how assets are typically
presented on the balance sheet.
The order in which such assets are presented is based on the
amount of time it will take to convert them into cash. Thus, cash is
always presented first as it is readily available, and no further
conversions are needed.
Instruction
Solvency is the ability of a business to meet its long-term debts
and financial obligations.
When a company is solvent, it mean it can achieve its long-term
goals while meeting financial obligations in the conduct of its
operations.
A business is considered solvent whe its realizable value is greater
than its liabilities. Coincidentally, a business is considered
insolvent when its realizable value is lower than it total liabilities.
Realizable value is simply the difference between total assets and
total liabilities.
Stability is the ability of a business to withstand financial
imbalances from external factors. These factors may be
consequences of the financial crisis on a domestic or even a global
scale.
Profitability
To understand profitability, one must establish the difference
between profit and profitability. These two terms, although
closely related, are very distinct from each other.
Profit is an absolute amount and is the desired bottom line of a
business operations, while profitability is a relative level.
Profitability is a measurement of business profits that quantifies
them so that intended users can determine whether the achived
level of profits justify the activities performed.
Both exhibits show a profit amounting to P60,000.00 but differ in
the amount of investment. When you consider the investments
made and relate them to the resulting profit, you will be able to
identify that Company A is more profitable than Company B.
4.5
Application
Practice Your Skills
Using the Measurement Tools
Demonstrate how measurement tools can be used by answering the questions related to
specific business scenarios. Provide a brief justification for your answers.
1. Suppose you are an officer of a financial institution. A company wants to take a shortterm loan that will mature in less than one year. What measurement tools is most
appropriate in deciding whether you would approve the loan application or not?
2. Assume that you plan on taking a five-year loan; what measurement tool will be most
appropriate in deciding whether it is wise to take the loan?
3. Should business owners give more emphasis on profit or profitability? Explain your
answer.
25
minutes
4.6
Assessment
A. True or False. Write true if the statement is correct. Otherwise,
write false.
Anlysis of Learners'
Products
20
4.7
minutes
Reinforcing /
strengthening the day’s Study in advance Unit 5 Lesson 2.
minute
lesson
Assignment
1
5.
B. Matching Type. Match the words in Column A with the words
in Column B.
Remarks
6. Reflections
A. No. of learners who
earned 80% in the
B. No. of learners who
require additional
E. Which of my learning
strategies worked well?
F. What difficulties did I
encounter which my
G. What innovation or
localized materials did I
Prepared:
C. Did the remedial lessons work? No. of
learners who have caught up with the lesson.
D. No. of learners who continue to require
remediation.
Teacher