Ch3 (K): The accounting information system

Question 1

Name me the accounts that go under assets

Answer 1

Inventory
Accounts receivable
Prepaid Rent
Cash
Tangible assets
Work-in-progress
Trade receivable (same thign as accounts receivable)

Question 2

Name me the accounts that go under liabilities

Answer 2

Loans
Accounts payable
Unearned revenue
Salary and wage payable
Indebtedness to suppliers

Question 3

Name me the accounts that go under equity

Answer 3

Share capital
Dividends
Service revenue
Salary expenses
Utility Expenses
Retained earnings

Question 4

Talk to me about credit and debit for the assets liabilities and equity and revenue

Answer 4

Assets+ expenses:
Debit = increase and credit =decrease

Liabilities +equity +revenue:

Debit= decrease and credit=increase

Question 5

Closing balance formula

Answer 5

ClosingBalance=OpeningBalance+TotalPurchases−TotalSales(atcost)