Lesson 3 - Classifying Accounts

Multiple Choice

What does your business OWN?

• A lawn mower

• Money owed to your parents

• An expense

• Nothing

Multiple Choice

What does your business OWE?

• Equipment

• Supplies

• Loan to your parents

• Nothing

Multiple Choice

What are Assets?

• Things the business owns

• Things the business owes

• Owner's investment only

• Profit earned

Multiple Choice

What are Liabilities?

• Cash

• Supplies

• Debts

• Equipment

Multiple Choice

What is

Owner's Equity?

• Business debts

• The owner's claims on the business

• A types of liability

• Cash flow

Categorize

Options (14)

Cash

Accounts Receivable

Supplies

Accounts Payable

Loans

Capital

Sales/Revenue

Drawing

Expenses

Equipment

Buildings

Mortage Payable

Notes Payable

Prepaid Insurance

Sort each account into Assets, Liabilities or Owner's Equity

Asset

Liability

Owner's Equity

Open Ended

Choose ONE account we talked about today. Explain why it belongs in the catetory it's in.