Unit 1 > Day 2

Unit 1 > Day 2

by Elijah Fielding

Open Ended

Tell me what you remember about Accounting 1? What was your experience? Why did you decide to take Accounting 2?

​Define:

• ​Assets

• ​Liabilities

• ​Equity

Multiple Choice

Which of the following is the parent account of: Cash?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Stock?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Goods for Sale?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Building Loan?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Computer Equipment?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Debt Owed to Supplier?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Owner's Share of Business?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Company Cars?

• Assets

• Liabilities

• Equity

• None of these

Multiple Choice

Which of the following is the parent account of: Auto Loan?

• Assets

• Liabilities

• Equity

• None of these

​Bike Story

​I go to a bike store and buy a bike that costs $200. I pay $100 for the bike and owe the store $100.

​

​Property = Creditor's Claim + Owner's Claim

​

​Bike is worth $200 = Store owns $100 of the bike + I own $100 of the bike.

​Accounting Equation

​Assets = Liabilities + Equity

Multiple Choice

Is the following equation balanced?

$20 = $10 + $15

• True

• False

Multiple Choice

Is the following equation balanced?

$4128 = $1976 + $2152

• True

• False

Multiple Choice

Is the following equation balanced?

$890,463 = $376,855 + $512,323

• True

• False

Multiple Choice

Is the following equation balanced?

$42,688 = $10,545 + $32,143

• True

• False

​Accounting Cycle

• ​Collect and verify source documents

• ​Analyze each transaction (T-charts)

• ​Journalize each transaction (gereral journal)

• ​Post to ledger

• ​Prepare a trial balance

• ​Prepare a worksheet

• ​Prepare financial statement

• ​Journalize and post closing entries

• ​Prepare a post-closing trial balance

Multiple Choice

Balanced?

$934 in equity. $1432 in assets. $378 in liabilities.

• True

• False

Multiple Choice

I owe Petco $100 for dog food. What type of account would that be?

• Assets

• Liabilities

• Equity

• None of these