Examples of elements in the accounting equation Flashcards
Be able to classify accounts by element of the accounting equation
1
Q
Property
A
Asset
2
Q
trade receivables / debtors / sales ledger
A
asset
3
Q
trade payables / creditors / purchases ledger
A
liability
4
Q
vehicles
A
asset
5
Q
sales
A
income (increases equity)
6
Q
cost of sales / purchases
A
expense (decreases equity)
7
Q
advertising
A
expense (decreases equity)
8
Q
loan
A
liability
9
Q
A
10
Q
cash float (money in the till)
A
asset
11
Q
bank (favourable balance)
A
asset
12
Q
bank overdraft
A
liability
13
Q
stationery used
A
expense (decreases equity)
14
Q
rent expense
A
expense (decreases equity)
15
Q
salaries and wages
A
expense (decreases equity)
16
Q
commission income
A
income (increases equity)
17
Q
petty cash
A
asset
18
Q
rent income
A
income (increasers equity)
19
Q
inventory on hand
A
asset
20
Q
telephone costs
A
expense (decreases equity)
