Ministry of Education and Science of Ukraine
Sumy State University
Educational and Scientific Institute of Business Technologies "UABS"
Department of Economic Cybernetics
Independent work
by the discipline «Accounting»
Fulfilled: student of the AБ-71-8a group
V.V. Radko
Checked: Z. A. Oleksich
2018
Option 1
1. Classify the following accounts as Assets (A), Liabilities (L), Income (I),
Expenses (Ex), or Equity (Eq), Increase/ Decrease, Debit/ Credit:
Element Increase/ Debit/ Credit
Account name Decrease (Normal
balance)
Bank Assets ↑ Debit; ↓ Debit
Credit
Furniture Assets ↑ Debit; ↓ Debit
Credit
Capital Equity ↑ Credit; ↓ Credit
Debit
Buildings Assets ↑ Debit; ↓ Debit
Credit
Shop equipment Assets ↑ Debit; ↓ Debit
Credit
Inventory Assets ↑ Debit; ↓ Debit
Credit
Wages Expenses ↑ Debit; ↓ Debit
Credit
Bank Assets ↑ Debit; ↓ Debit
Credit
Fees received Income ↑ Credit; ↓ Credit
Debit
Goodwill Assets ↑ Debit; ↓ Debit
Credit
Accounts payable Liabilities ↑ Credit; ↓ Credit
Debit
2. Word Scramble
1. The financial statement that is described as a "snapshot" of
Balance
a company’s financial position is the balance _sheet.
2. The accrual method (or basis) of accounting reports
expenses when they are incurred (as opposed to when they Accrual
are paid).
3. Land is an asset that is not depreciation. Depreciation
4. An asset's book value is its cost minus its accumulated
Accumulated
depreciation.
5. The amount of prepaid insurance that has expired in the
Expense
accounting period is reported as an expense.
6. A credit entry will cause the Cash account balance to
Decrease
decrease.
7. Assets = Liabilities + Stockholders’ Equity is known as the
Equation
basic accounting Equation.
8. Revenues will cause a corporation's Stockholders' Equity
Revenues
to increase.
9. A listing of the general ledger accounts that does not
Chart
include the account balances is the chart of accounts.
10. The general ledger accounts whose balances are closed at
the end of the accounting year are the Income statement Income
accounts.
11. The statement of cash flows reports amounts according to
Operating
three activities: operating, financing, and investing.
12. The amount of prepaid insurance that has not expired as
Asset
of the end of the accounting period is reported as an asset.
13. Property is not reported at its current market value
Principle
because of the cost principle.
14. The double -entry system means that each transaction
will affect a minimum of two accounts and that debits must Double
equal credits.
15. Unearned Revenues is reported on the balance sheet as a
Liability
Liability.
16. Under the accrual method, the account that is debited at
Receivable
the time of a sale on credit is Accounts Receivable.
17. Under the accrual method, revenues are reported on the
Earned
income statement when they are earned.
18. Under the accrual method, when a company purchases
goods from a supplier on credit the company will credit Payable
Accounts Payable.
19. This is an allocation process (not a valuation process)
Depreciation
associated with equipment and other plant assets.
20. The component of stockholders' equity that serves as a
link to the corporation's income statement is retained Earnings
earnings. _______________.
