professor simons

XACC 290 Week 1 Worksheet Name:

This worksheet is two pages.

This worksheet focuses on information located on the Power Point Presentation titled “Getting Grounded in Accounting” and on information in Chapter 3.

Answer questions 1 – 3 in complete sentences:

1. What is an Asset?

2. What is a Liability?

3. What is Owners Equity?

4. In the space provided indicate if the account is as an Asset, Liability, Owners Equity Account, Revenue or Expense (Refer to Chapter 2 page 48 – 54) Chapter 3 pages 119 to 121).

a. Common Stock ____________

b. Accounts Receivable ____________

c. Accounts Payable ____________

d. Cash ____________

e. Unearned Revenue ____________

f. Land ____________

g. Inventory ____________

H. Administrative Salaries ____________

I. Maintenance ____________

J. Sales ____________

For Questions 5, 6 and 7 Write a response to the following questions: (Refer to Presentation “Getting Grounded in Accounting” and to Chapter 3 pages 111 – 112 )

5. In what way is the word debit defined?

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6. In what way is the word credit defined?

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7. Define “normal balance”?

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8. Complete the following matrix. To do so, ask yourself questions, such as:

· What increases the Asset account, a debit or a credit?

· What decreases the Asset account, a debit or a credit?

· What is the normal balance of the Asset account, a debit or a credit?

In each space indicate if a “debit” or “credit” entry increases or decreases the account. Indicate if the Normal Balance of the account is a “debit” or a “credit” balance. (Refer to the illustrations on pages 112 – 116) Please see below demonstration - I started the matrix for you.

Account Changes
Account Categories	What increases the account?	What decreases the account?	What is the normal balance?
Assets	A “Debit” entry
Liabilities
Equity
Revenue
Gains
Expenses
Losses