ACCREP Intro

I can understand and explain the basic structure of a balance sheet.

• Yes

• No

I feel confident in creating journal entries for simple transactions.

• Yes

• No

I can classify accounts correctly as assets, liabilities, equity, revenues, or expenses.

• Yes

• No

I understand the differences between accrual accounting and cash accounting.

• Yes

• No

I can calculate depreciation for an asset using the straight-line method.

• Yes

• No

What is the basic formula of a balance sheet?

• Assets = Liabilities + Equity

• Assets = Revenue - Expenses

• Liabilities = Assets + Equity

• Equity = Assets - Liabilities

Which of the following accounts is a liability?

• Cash

• Accounts Payable

• Sales Revenue

• Supplies

What is the method called where revenue and expenses are recorded when they occur?

• Cash Accounting

• Accrual Accounting

• Expense Recognition

• Matching Principle

What happens when a company purchases supplies worth $500 but has not paid yet?

• Assets and Equity increase.

• Assets and Liabilities increase.

• Only Assets increase.

• Equity decreases.

What happens to liabilities and equity when a company takes a loan to purchase equipment?

• Liabilities increase, and equity remains unchanged.

• Liabilities decrease, and equity increases.

• Assets decrease, and liabilities remain unchanged.

• Both liabilities and equity decrease.