Accounting and Finance Foundations

Unit 5

Accounting and Finance Foundations Unit 5: Accounting Terminology 434

Accounting TerminologyOpen-Response Unit Assessment S/T Guide

Skill Standards

Academic:

AB 6 Demonstrate the ability to write clearly and concisely using industry specific technology

AD 1 Perform basic and higher level math operations (e.g., addition, subtraction, multiplication, division,

decimals, fractions, units of conversion, averaging, percentage, proportion, ratios)

Accounting:

OB 1 Identify and describe the purpose of generally accepted accounting principles (GAAP)

OB 3 Utilize the accounting equation in several mathematical forms

OB 5 Analyze and record business transactions

Financial Services:

OA 1 Understand and apply the accounting equation

Scenario

Triple A’s Law Service uses the following Chart of Accounts to record their business transactions.

You have been hired to organize and enter the firm’s transactions for the accounting period.

Triple A’s Law Service’s CHART OF ACCOUNTS

Assets (100)

110 Cash

120 Accounts Receivable

130 Supplies

140 Prepaid Insurance

150 Office Equipment

160 Office Furniture

170 Store Equipment

Liabilities (200)

210 Accounts Payable,

Furniture World

Owner’s Equity (300)

310 Aubrey’s Capital

320 Aubrey’s Drawing

330 Income Summary

Revenue (400)

410 Sales

Expenses (500)

510 Rent Expense

520 Utilities Expense