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