Grade 11 Accounting

Test Review Sheet

Unit: Analyzing the Expanded Accounting Equation

Resources:

• text, chapters #3, 4, and 5

• Owner's Equity Section of the Balance Sheet (Narrated PowerPoint)

• Exploring the Income Statement

• Exploring the Balance Sheet

• Debit-Credit Handout

Practice:

• Expanded Equation Practice Test (PDF file)
• Practice Test Answer Key (PDF File)

Requirements:

In order to successfully complete the 3A Accounting test on chapter #3, the student should be able to perform the following tasks:

• explain the function and structure of the basic T-account;

• demonstrate an understanding of debit/credit theory by placing opening balances within asset, liability or owner's equity accounts;

• define any of the following concepts:
  • account,
  • debit,
  • credit,
  • account balance, and
  • ledger

• demonstrate an understanding of debit/credit theory by recording transactions within any variety of asset, liability, or owner's equity accounts, including:
  • capital,
  • drawings,
  • revenue, and
  • expenses.

• Outline the fundamental objectives of accounting, including:

  • gathering financial information,
  • preparing and collecting permanent records,
  • rearranging, summarizing, and classifying financial information,
  • preparing information reports and summaries, and

  • establishing controls to promote accuracy and honesty among employees.
• Establish the Accounting Equation:
  • Assets = Liabilities + Owner's Equity

• Correctly complete a Balance Sheet (given the names of various accounts and their respective balances).
• Understand the nature of accounts that would typically be placed within a Balance Sheet, such as:
  • cash,
  • accounts receivable,
  • furniture,
  • equipment,
  • supplies,

  • bank loan payable,
  • account payable,
  • mortgage payable, and

  • capital.
• Work with the following concepts:
  • economic resources,
  • creditor,
  • credit,
  • debt,
  • debtor,
  • owner investment,
  • GAAPs,
  • entity concept,
  • liquidity order,
  • order for listing liabilities, and
  • demand loan.
• Explain the functions of, and work with, the following types of owner's equity accounts:
  • revenue,
  • expense,
  • drawings, as well as the original
  • capital account.
• Understand and utilize the following new GAAPs associated with these new accounts:
  • the revenue recognition principle,
  • the expense recognition principle, and
  • the matching principle.

  Understand the following concepts related to the above principles:

  • Income Statement,
  • net income,
  • net loss,
  • fiscal period, and the
  • Chart of Accounts
• Record transactions within T-Accounts or a Summary Table

• Prepare an Income Statement which includes an expanded Owner's Equity section

• Prepare a Balance Sheet which is related to the expanded Income Statement.

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