Intro to Accounting

Account Types

100

What is the definition of a Revenue account type?

Earned sales OR

value of products generated in the production process. 

200

What is a Liability?

Something you owe

300

What is an Asset and one example of an asset? 

Something you own. 

Example: Tractor, land, etc.

400

What is an example of an expense account type?

rent, supplies, insurance, gas, etc.

500

What is Owner's Equity?

Difference between assets and liabilities OR how much you 'own' of the company.

Chart of Accounts and Accounts Impacted Examples

100

What is a Chart of Accounts?

The list of all account names used to record transactions in your organization.

200

Name one of the two accounts impacted when you earn cash sales at a farmer's market.

Cash and Revenue accounts

300

What 2 account types are impacted when you pay your rent every month?

Expense = Rent expense is increased

Asset = Cash account is decreased

400

When should you set up your chart of accounts? 

At the beginning of your business, before any transactions happen. 

Also a good idea to get an accountant's help on this!

500

What form should you model your Chart of Accounts after? (hint: this helps you be ready for future changes in your company)

Schedule F Tax Form