5 40 0 $4.50 180.00 0 180.00 ACCOUNTING TEST Classifying Balance Sheet Items: Classify each item listed by the following: A asset – L liability – C capital – Example cash on hand and in the bank A 1. owed to Marco Plumbing Company L 2. operating supplies owned A 3. unpaid electric bill L 4. office equipment A 5. amount owed to Auto Wash Equipment Company L 6. car wash equipment A 7. amount that remains after the total liabilities are subtracted from the total assets C 8. any amount owed L 9. any item owned A 10. the equity of the owner C Basic Principles of Debit and Credit for Balance Sheet Accounts: for Debit or for Credit Circle “D” “C” 1. An increase in the balance of an asset account is recorded as a: D C 2. An entry on the left-hand side of any asset account is recorded as a: D C 3. The balance of any liability account is always a: D C 4. A decrease in the balance of a liability account is recorded as a: D C 5. An increase in the balance of the capital account is recorded as a: D C 6. An entry on the left-hand side of any account is always a: D C Debit and Credit Parts of Transactions Affecting Balance Sheet Accounts: Classify each item listed by the following: A cash – B operating supplies – C car wash equipment – D office equipment – E auto wash equipment company – F Marco Plumbing Company – G Harry Shaw, Capital – Debit Credit
5 40 0 $4.50 180.00 0 180.00 ACCOUNTING TEST Classifying Balance Sheet Items: Classify each item listed by the following: A – asset L – liability C – capital Example cash on hand and in the bank A 1. owed to Marco Plumbing Company L 2. operating supplies owned A 3. unpaid electric bill L 4. office equipment A 5. amount owed to Auto Wash Equipment Company L 6. car wash equipment A 7. amount that remains after the total liabilities are subtracted from the total assets C 8. any amount owed L 9. any item owned A 10. the equity of the owner C Basic Principles of Debit and Credit for Balance Sheet Accounts: Circle “D” for Debit or “C” for Credit 1. An increase in the balance of an asset account is recorded as a: D C 2. An entry on the left-hand side of any asset account is recorded as a: D C 3. The balance of any liability account is always a: D C 4. A decrease in the balance of a liability account is recorded as a: D C 5. An increase in the balance of the capital account is recorded as a: D C 6. An entry on the left-hand side of any account is always a: D C Debit and Credit Parts of Transactions Affecting Balance Sheet Accounts: Classify each item listed by the following: A – cash B – operating supplies C – car wash equipment D – office equipment E – auto wash equipment company F – Marco Plumbing Company G – Harry Shaw, Capital Debit Credit