Fundamentals of

Accountancy, Business,
and Management PII
Quarter 3 – Module 2
Statement of
Comprehensive Income
Part 1
Fundamentals of Accountancy Business and Management II – Grade 11
Alternative Delivery Mode
Quarter 3 – Module 2: Statement of Comprehensive Income Part 1
First Edition, 2024

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 Fundamentals of
Accountancy, Business
and Management II
Quarter 3 – Module 2: Week 2
Statement of Comprehensive
Income Part 1
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions,
directions, exercises, and discussions are carefully stated so that you can
understand each lesson.

Each SLM is composed of different parts. Each part will guide you step by
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge of lessons in each

SLM. This will tell you if you need to proceed with completing this module or if
you need to ask your facilitator or your teacher’s assistance for a better
understanding of the lesson. At the end of each module, you need to answer the
post-test to self-check your learning. Answer keys are provided for each activity
and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they
can best help you with your home-based learning.

Please use this module with care. Do not put unnecessary marks on any
part of this SLM. Use a separate sheet of paper to answer the exercises and tests.
And read the instructions carefully before performing each task.

If you have any questions about using this SLM or any difficulty in answering
the tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.
 What I Need to Know

In general, this module aims to encourage the learners to appreciate and study
the statement of comprehensive income. Students will be able to accurately interpret
and analyze a Statement of Comprehensive Income, identifying key components such
as revenues, expenses, gains, and losses, as well as understanding their impact on
overall financial performance and the implications for stakeholder decision-making.
Additionally, students will demonstrate the ability to compare and contrast this
statement with the traditional income statement, highlighting its relevance in
providing a more complete understanding of a company’s financial health.

The module covers only one topic, that is:

● Lesson 1 – Statement of Comprehensive Income Part 1

After going through this module, you are expected to:

MELC:
1. Identify the elements of Statement of comprehensive Income (SCI) and
describe each of these items for service business and merchandising
business.

LO:
1. Explain the key elements of the Statement of Comprehensive Income for
service business.
2. describe the key elements of the elements of Statement of Comprehensive
Income of a merchandising business.
3. Interpret the information presented in the Statement of Comprehensive
Income.

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 What I Know

Multiple Choice: Choose the letter of the correct answer.

Write your answer on a separate sheet of paper.

1. Which of the following is considered revenue?

A. Gain on sale of equipment
B. Service fee
C. Other Income
D. Other comprehensive income

2. Which of the following items is likely to be presented in the statement of

comprehensive income of a merchandising business but not of a service
business?
A. Service fees
B. Salaries expense
C. Cost of Sales
D. Income tax expense

3. Which method of statement of comprehensive income presents cost of sales

separately from other expenses?
A. Single step
B. Single presentation
C. Multiple step
D. Two statement presentation

4. Which method presents expense in the statement of comprehensive income

without regard distinction as to their function?
A. Nature of expense
B. Function of expense
C. Single step presentation
D. Two-statement presentation

5. Which method presents the cost of goods sold separately in the statement of
comprehensive income?
A. Nature of expense
B. Function of expense
C. Single step presentation
D. Multiple step presentation

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6. Which income is earned from side activity of a firm and is also referred to as
revenue?
A. Infrequent gains
B. Ordinary Income
C. Operating Income
D. Non-operating income

7. Which revenue account is appropriate for services rendered by induvial

practicing his/her profession?
A. Sales
B. Service fee
C. Service income
D. Professional fee

8. Which necessary cost arises from the normal course or operation of business?
A. Loss
B. Expense
C. Finance cost
D. Other expense

9. Which cost refers to an amount incurred for the delivery of goods sold to a
customer?
A. Freight-In
B. Freight-out
C. Supplies expense
D. Cost of goods sold

10. Which of the following is correct, in relation to the computation of profit or

loss?
A. Revenue – Cost and Expense = profit or Loss
B. Revenue + Cost and Expense = profit or Loss
C. Revenue x Cost and Expense = profit or Loss
D. Revenue / Cost and Expense = profit or Loss

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 Lesson
Statement of Comprehensive
1 Income
A Statement of Comprehensive Income is a financial document that provides
an overview of a company's financial performance over a specific period, typically a
fiscal quarter or year. It goes beyond the traditional income statement by including
not only net income but also other comprehensive income (OCI) items.
It provides a more complete picture of a company's financial health by including
items that may affect equity but do not appear in the net income. Investors and
analysts use this statement to assess overall profitability and the potential.
The Statement of Comprehensive Income helps stakeholders understand how various
factors influence a company's financial performance, making it a critical tool in
financial reporting and analysis.

What’s In

Before we proceed to the new lesson, let’s try to recall our lesson on
the Statement of Financial Position.
Directions: Categorize the listed accounts below in accordance with the classified
format of the statement of financial position. Write your answer on a separate sheet.

Solution Guide
Current Assets Noncurrent Current liabilities Noncurrent
assets liability

Petty cash fund Cash in bank Temporary Accounts

Investment Receivable
Allowance for bad Notes Receivable Inventory Land
debts
Building Accumulated Equipment Accumulated
Depreciation- Depreciation-
Building Equipment
Patent Trademark Accounts Payable Notes payable
Income tax Salaries payable Utilities payable Unearned income
payable
Owners Capital Owner’s drawing Bonds payable Mortgage payable

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 What’s New

Are you ready for the new lesson? Try this activity to have an idea on
what to expect.

Directions: Compute the missing item in the given statement of comprehensive

income to know how much sales and operating expense it incurred during the
period. Write your answer on a separate sheet of paper.

ABM Company reported profit of 150,000 which represents 15% of sales,

operating expense and gross profit rate were 15% and 40% respectively.
Sales 100% ?
Cost of Sales ____ ?____ ?
Gross profit 40% ?
Operating expenses 15% ?
Other expenses ____?____ ?
Net income 15% 150,000

What is It

The statement of comprehensive Income may be presented using a single -

statement presentation or a two-statement presentation. A two-statement
presentation compose of an income statement that shows the profit or loss and a
statement showing the other comprehensive income.

Single statement vs. Two statement presentation of The Statement of

Comprehensive Income Statement

A. Single statement presentation

Magic Appliance Center

Statement of Comprehensive Income
For the Period ended December 31, 2024

Revenue 10,000.00
Expenses 6,000.00
Profit 4,000.00
Other comprehensive income 500.00
Comprehensive income for the year 4,500.00

B. Two- statement presentation

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 1. The income statement

Magic Appliance Center

Statement of Comprehensive Income
For the Period ended December 31, 2024

Revenue 10,000.00
Expenses 6,000.00
Profit 4,000.00

2. The Statement of comprehensive income

Magic Appliance Center

Statement of Comprehensive Income
For the Period ended December 31, 2024

Profit or Loss 4,000.00

Other comprehensive income 500.00
Comprehensive income for the year 4,500.00

Elements of statements of comprehensive income

The following are the elements of the statements of comprehensive

income. The statement shows the result of operation or the
performance of the business as of the given period.

1. Income
These are increases in economic benefits during the period in the form of
increases in assets or decreases in liabilities that results in increases in equity
not including those relating owners’ investment. Income includes both revenue
and gains.

a. Revenues
Those income arises in the ordinary business activities of the business. e.g.

b. Gains
It represents other items that meet the criteria of income and may or may not
arise in the ordinary course of business.

Operating vs. Non-operating Income

Operating income is the income received from the business’s main activities,
like sales in merchandising business. A landscaping firms operating revenue
is derived from your services. Non-operating income is earned from a side
activity that is unrelated to your business’s day-to-day activities, like dividend
income. Non-operating revenue is more inconsistent than operating revenue.
Operating income is referred to as revenue while the non-operating income is
classified as gain.

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 The following are the common revenue and gains account:
Service Fee Revenues earned from rendering services.
/Service
Income
Sales Revenue earned from the sale of goods.
Interest Revenue earned from the issuance of interest-bearing
Income receivable.
Gains Income earned from sale of assets.
Professional Income from rendering professional services
Fee
Rent Income for allowing others to use the properties.
Income

2. Expense
These are decreases in economic benefits during the period in form of decreases
in economic benefits or increases in liabilities that resulted to decrease in equity
not including those relating to the withdrawal or distribution to the owners.
Expenses include both the expense and loses.

a. Expense
This necessary cost arises in the ordinary course of business.
b. Loss
It represents other cost that meet the criteria of expense and may or may not
arise in the normal or ordinary course of business.

Expenses vs. Losses

There are two essential differences between expenses and losses, which are as
follows:
• Nature of the item.
Expenses are incurred to produce revenues, while losses are related to largely
any other activity.
• Frequency of incurrence.
Expenses are incurred much more commonly than losses, and in much more
transactional volume. Losses incline to be infrequent and unusual. Thus,
expenses usually contribute far more to the reported profit or loss of a
business than any losses that it has experienced.

Cost of goods sold The value of inventory that have been sold during
the accounting period.
Freight out It is the seller’s cost of delivering goods to
customers.
Salaries Expense The salary earned by the employees for the
services they rendered.
Rent Expense It represents rentals that have been used up
during the accounting period.
Utilities Expense Represents the cost of utilities that have been
used during the accounting period.

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 e.g. electricity, water, technology and
communication
Supplies Expense Represents the cost of supplies used during the
period.
Bad debts Expense The amount of estimated losses from
uncollectible accounts receivable during the
period.
Depreciation The portion of the cost of the depreciable assets.
Expense e.g. of depreciable assets building, Equipment,
furniture etc.
Advertising It represents the cost of promotional marketing
Expense activities during the period.
Insurance Expense It represents the cost of insurance pertaining to
the current accounting period.
Taxes and licenses It represents the cost of business and local taxes
required by the government for the conduct of
business.
Transportation Transportation expense represents the necessary
and Travel and ordinary cost of employee getting from
Expense workplace to another while travel expenses are cost
incurred when traveling on business trips.
Interest Expense It is the cost incurred for borrowing money. It is the
price that the lender chargers a borrower for the
use of the lender’s money.
Miscellaneous Represent various small expenditures which do not
Expense warrant separate presentation.

The difference between the income and expense represents profit or loss. If
income is greater than expenses, the difference is profit or net income but if Income
earned is less than the expenses incurred for the period, the difference is loss or net
loss.

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 What’s More
Now that you have learned the elements of Statement of
Financial Position you are now ready to answer the following
activities.

Activity 1: Tell if it is true or not!

Directions: Put a smiley if the statement if true and heart if it is false,

write your answers on a separate sheet of paper.

Statements

1. The statement of comprehensive income shows information on

the entity’s financial position during the period.

2. Revenue includes both income and gains

3. The revenue earned by a merchandise business from selling

goods is commonly referred to as sales.

4. If income is greater than expense, the difference is loss.

5. The revenue earned by service business from rendering service

is commonly referred to as service fee.

6. If total income is P100 while total expenses are P80, loss is P20

7. Expenses decreases equity

8. The elements of the statement of comprehensive income are

income and expenses.

9. Income increases equity.

10. Distribution cost or selling expense are cost attributable to

selling activities.

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Activity 2: Describe me
Directions: Find the term that is being described below. Choose among the
following accounts in the elements of Statement of Comprehensive Income. Write
your answer on a separate paper.

Salaries Rent Income Gains Bad debts

Expense Expense
Utilities Depreciation Interest Taxes and
Expense Expense Expense licenses
Rent Expense Cost of goods
sold

1. The value of goods that have been sold during

the accounting period.
2. Income for allowing others to use the
properties.
3. The amount earned by the employees for the
services they rendered.
4. It represents cost spent for the of use of
property during the accounting period.
5. Income earned from disposition or sale of
assets.
6. Represents the cost incurred during the
accounting period for electricity, water,
technology and communication.
7. The estimated losses from uncollectible
accounts receivable during the period.
8. The expired cost of a valuable asset such as
building, Equipment, furniture, etc.
9. It represents the cost of business and local
taxes required by the government for the
conduct of business.
10. It is the cost incurred for borrowing money. It
is the price that the lender chargers a
borrower for the use of the lender’s money.

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Activity 3: Tell me!
Directions: Tell if it is a revenue or gain by writing the word income and write
the word expense if it is an expense or it is an incurred losses during the
operation of a business. Write the answer on a separate paper.

1. The value of goods that have been sold during

the accounting period.
2. Income for allowing others to use the
properties.
3. The amount earned by the employees for the
services they rendered.
4. It represents cost spent for the of use of
property during the accounting period.
5. Income earned from disposition or sale of
assets.
6. Represents the cost incurred during the
accounting period for electricity, water,
technology and communication.
7. The estimated losses from uncollectible
accounts receivable during the period.
8. The expired cost of a valuable asset such as
building, Equipment, furniture, etc.
9. It represents the cost of business and local
taxes required by the government for the
conduct of business.
10. It is the cost incurred for borrowing money. It
is the price that the lender chargers a
borrower for the use of the lender’s money.

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 What I Have Learned

Activity Part 1: Identifying Components

Directions: From the Statement of Comprehensive Income at hand, identify the
elements by writing them on a separate sheet of paper.

Learners will be provided with a sample Statement of Comprehensive Income of a

different forms of business and identify key components, categorizing them under
revenues, expenses, and other comprehensive income.

Solution guide
Revenues Expenses Other income
1. 1. 1.
2. 2. 2.
3. 3. 3.
4. 4. 4.
5. 5. 5.

Activity Part 2: Simulated Financial Scenario

Directions: Using the sample statement provided in activity part 1, construct your
own hypothetical Statement of Comprehensive Income.

Steps:
1. Choose a type of business (e.g., retail, service, manufacturing).
2. Based on industry historical data, participants will estimate both operating
and non-operating revenues.
3. Determine both operating and non-operating expenses necessary for the
business’s operation.
4. Use the established revenues and expenses to calculate the profit or loss for
the period.

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 What I Can Do

Correct me if I am wrong!
Directions: The Statement of Comprehensive Income presented below is
erroneous. Rectify it by placing it to the correct element. Write the corrected
statement on a separate sheet.

Bamboo Paraiso Resort

Statement of Comprehensive Income

For the period ended December 31, 2024

Income
Service fee 8,700.00
Taxes and licenses 700.00
Transportation and travel expense 50.00
Utility expense 200.00
Supplies expense 100.00
Losses 100.00
Total Income 9900.00

Expenses
Salary expense 3,000.00
Rent expense 300.00
Interest income 600.00
Gains 200.00
Depreciation expense 400.00
Interest expense 20.00
Miscellaneous expense 10.00
Total expense 4,530.00
Profit for the year 5,370.00
Other comprehensive income -
Comprehensive income for the year 5,370.00

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 Assessment

Multiple Choice: Choose the letter of the correct answer. Write

your answer on a separate sheet of paper or scan the QR code to
answer in google form.

1. Which of the following is considered revenue?

A. Gain on sale of equipment
B. Service fee
C. Other Income
D. Other comprehensive income

2. Which of the following items is likely to be presented in the statement of

comprehensive income of a merchandising business but not of a service
business?
A. Service fees
B. Salaries expense
C. Cost of Sales
D. Income tax expense

3. Which method of statement of comprehensive income presents cost of sales

separately from other expenses?
A. Single step
B. Single presentation
C. Multiple step
D. Two statement presentation

4. Which method presents expense in the statement of comprehensive income

without regard distinction as to their function?
A. Nature of expense
B. Function of expense
C. Single step presentation
D. Two-statement presentation

5. Which method presents the cost of goods sold separately in the statement of
comprehensive income?
A. Nature of expense
B. Function of expense
C. Single step presentation
D. Multiple step presentation

11
 6. Which income is earned from side activity of a firm and is also referred to as
revenue?
A. Infrequent gains
B. Ordinary Income
C. Operating Income
D. Non-operating income

7. Which revenue account is appropriate for services rendered by induvial

practicing his/her profession?
A. Sales
B. Service fee
C. Service income
D. Professional fee

8. Which necessary cost arises from the normal course or operation of business?
A. Loss
B. Expense
C. Finance cost
D. Other expense

9. Which cost refers to an amount incurred for the delivery of goods sold to a
customer?
A. Freight-In
B. Freight-out
C. Supplies expense
D. Cost of goods sold

10. Which of the following is correct, in relation to the computation of profit or loss?
A. Revenue – Cost and Expense = profit or Loss
B. Revenue + Cost and Expense = profit or Loss
C. Revenue x Cost and Expense = profit or Loss
D. Revenue / Cost and Expense = profit or Loss

12
 Additional Activities

Accounting: The language of business

Instructions: Create a report highlighting the operating result of the company
You may choose from but not limited to the following:
a. Narrative report
b. Power point presentation
c. Video presentation
d. Other as deemed more appropriate

Hundred Island Restaurant

Statement of Comprehensive Income
For the period ended December 31, 2024

Income
Service fee 87,000.00
Interest income 6,000.00
Gains 2,000.00
Total Income 95,000.00

Expenses
Salary expense 30,000.00
Rent expense 3,000.00
Utility expense 2,000.00
Supplies expense 1,000.00
Depreciation expense 4,000.00
Taxes and licenses 7,000.00
Transportation and travel expense 500.00
Interest expense 200.00
Miscellaneous expense 100.00
Losses 1,500.00
Total expense 49,300.00
Profit for the year 45,700.00

Activity Rubrics
Excellent Very Satisfactory Needs Points
(4 pts.) Satisfactory (2 pts.) Improvemen Earned
(3 pts.) t
(1 pt.)
1.Understand Demonstrates Demonstrates Demonstrates Demonstrates
ing thorough considerable some limited
Information understandin understandin understandin understandin
and Ideas g of topic or g of topic or g of topic or g of topic or
theme. theme. theme. theme.

2.Clarity of Communicate Communicate Communicate Communicate

Ideas s ideas with a s ideas with s ideas with s ideas with
high degree of considerable some clarity. limited
clarity. clarity. clarity.

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 Answer Key

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References
Tugas, Florenz C., and Herminigilda E. Salendrez. Fundamentals of Accountancy,
Business, and Management 2, 2016

Beticon, Josefina Loria, Fermin Antonio Yabut, and James Christopher Domingo.
Fundamentals of Accountancy, Business, and Management 2, 2016.

Ferrer, Rodiel C., and Zeus Vernon B. Millan., Fundamentals of Accountancy,

Business, and Management 2, 3rd editon

Millan, Zues Vernon B., Intermediate Accounting 3, 2020

Millan, Zues Vernon B., Intermediate Accounting IA, 2020

Florendo, Joselito G., Fundamentals of Accountancy, Business, and Management

2, First Edition

Manalaysay, Benedick., Fundamentals of Accountancy, Business, and

Management 1, 2017

Ferrer, Rodiel C., and Zeus Vernon B. Millan., Fundamentals of Accountancy,

Business, and Management, 2018-2019 edition

Palencia, Feme M., Fundamentals of Accountancy, Business, and Management,

2017

Ballada, Win and Susan Ballada, Fundamentals of Accountancy, Business, and

Management, 18th Edition

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