Income Statement
T-Accounts
Types of Equity Accounts
Chart of Accounts
Balance Sheet
100

This is the amount of money a business earns from its normal operations before any expenses are deducted.

What is revenue

100

What is the main function the the T-account?

To visually organize and track increases and decreases in accounts

100

How many types of accounts are there in the equity section?

4

100

This list shows all account names and numbers used by a business.

What is the Chart of Accounts

100

This section of the balance sheet shows what a company owns

What are assets

200

When preparing an income statement, expenses are typically listed in this order.

What is from largest to smallest (or most significant to least significant)

200

This side of a T-account shows increases for asset accounts.

What is the debit side

200

What are the accounts in the equity section of the expanded ledger?

Capital, Revenue, Expenses, Drawings

200

Each account in the chart has a unique number to make this process easier.

What is identifying and organizing transactions

200

This account appears in the equity section and shows the owner’s investment in the business.

What is Capital

300

If expenses are greater than revenue, this is the result on the income statement.

What is a Net Loss

300

This side of the T-account shows increases for liabilities and capital.

What is the credit side

300

What is another common name for revenue? 

Fees Earned

300

Account numbers for assets usually begin with this digit.

What is 1

300

This is the equation that the balance sheet must always balance to.

What is Assets = Liabilities + Owner’s Equity

400

This equation is used to calculate net income.

What is Revenue – Expenses = Net Income

400

This type of account always has a credit balance in the trial balance.

What is a revenue or liability account

400

Expenses have this effect on equity.

Decreases

400

Revenue accounts in the Chart of Accounts typically start with this digit.

What is 4

400

On a classified balance sheet, long-term assets and current assets are separated. Give one example of a long-term asset.

What is equipment, building, land, or vehicles

500

If a business earns $10,000 in revenue and has $2,000 in advertising, $3,000 in salaries, and $1,000 in rent, what is its net income?

What is $4,000

500

If Drawings are recorded, which side of the Drawings T-account is increased?

What is the debit side

500

These two equity accounts are temporary and reset each accounting period.

What are Revenue and Expenses

500

What is the order in which accounts typically appear in the chart of accounts, starting with the lowest account numbers.

What are Assets, Liabilities, Owner’s Equity, Revenue, and Expenses

500

A company increases its liabilities by $10,000 and purchases a new asset. If equity does not change, what happens to the balance sheet equation

it remains in balance, because both sides increase by $10,000