• Text: Chapters #23 and 24;
• Accounting Equation Worksheet;
• Account Identification Worksheet;
• Income Statement (Blank Form);
• Balance Sheet (Blank Form);
• Summary of Accounts;
• Financial Statements (Examples);
• Class lessons:
  • Lesson #10, Introduction to Accounting
  • Lesson #11, Defining Accounts
  • Lesson #12, Financial Statements - The Income Statement
  • Lesson #13, Financial Statements - The Balance Sheet
  • Lesson #14, Financial Projections

• Practice Multiple Choice
• Practice Multiple Choice - Answers
• Practice Income Statement & Balance Sheet
• Practice Income Statement & Balance Sheet - Answer Key

In order to successfully complete the test at the conclusion of our accounting unit, the student should be able to perform the the following tasks:

• Explain the function of accounting.

• Outline the accounting equation:

  Assets = Liabilities + Owner's Equity

• Explain the meaning of each element within the accounting equation.

• Explain the function of an account.

• Distinguish between an account and an element of the accounting equation.

• Outline and explain each of the four types of Owner's Equity accounts:
  • Capital,
  • Drawings
  • Revenue
  • Expenses

  *NOTE: You must be sure to be able to identify what type of business transaction will result in an entry to an expense account.

• Differentiate between permanent and temporary accounts.

• Explain the order in which assets should be listed.

• Explain the order in which liabilities should be listed.

• Explain the function of, and correctly complete, an Income Statement.

• Explain the function of, and correctly complete, a Balance Sheet.

• Correctly place the following account titles under the appropriate element of the accounting equation:
  • Cash,
  • Accounts Receivable,
  • Equipment,
  • Furniture,
  • Automobile,
  • Building,
  • Land,
  • Bank Loan Payable,
  • Accounts Payable,
  • Mortgage Payable,
  • Capital,
  • Fees Earned (or any other revenue account),
  • Drawings,
  • and any of a variety of expense accounts, (ie: advertising, hydro, salaries, rent, utilities, phone, insurance, etc.)