The worksheet focuses on information located on the Power Point Presentation titled "Getting Grounded in Accounting"
Response questions 1 - 3 in complete sentences:
1. What is an Asset?
2. What is a Liability?
3. What is Owners Equity?
4. In the space provided indicate if the account is as an Asset, Liability, Owners Equity Account, Revenue or Expense
a. Common Stock ____________
b. Accounts Receivable ____________
c. Accounts Payable ____________
d. Cash ____________
e. Unearned Revenue ____________
f. Land ____________
g. Inventory ____________
H. Administrative Salaries ____________
I. Maintenance ____________
J. Sales ____________
Write a response to the following questions: (Refer to Presentation "Getting Grounded in Accounting"
5. In what way is the word debit defined?
6. In what way is the word credit defined?
7. Define "normal balance"?
8. Complete the following matrix. To do so, ask yourself questions, such as:
• What increases the Asset account, a debit or a credit?
• What decreases the Asset account, a debit or a credit?
• What is the normal balance of the Asset account, a debit or a credit?
In each space indicate if a "debit" or "credit" entry increases or decreases the account. Indicate if the Normal Balance of the account is a "debit" or a "credit" balance. Please see below demonstration - I started the matrix for you.
|
Account Changes
|
|
Account Categories
|
What increases the account?
|
What decreases the account?
|
What is the normal balance?
|
|
Assets
|
A "Debit" entry
|
|
|
|
Liabilities
|
|
|
|
|
Equity
|
|
|
|
|
Revenue
|
|
|
|
|
Gains
|
|
|
|
|
Expenses
|
|
|
|
|
Losses
|
|
|
|