Legacy of Wisdom Academy of Dasmariñas, Inc.
Golden City, Salawag, Dasmariñas City
SY 2020 – 2021
Fundamentals of Accounting
LESSON 6- FIVE MAJOR ACCOUNTS
ACTIVITY NO. 8
Name: Delos Reyes Gianna Date: 09-18-20
Matching type. The terms labelled A to T are the one being described in the sentences numbered 1-20.
Match each term with the correct sentence.
A. Account k. Account receivable
B. asset L. building
C. basic accounting equation M. cash
D. chart of accounts N. cash equivalent
E. Double- entry bookkeeping O. equipment
F. Duality P. furniture and fixtures
G. Expenses Q. inventories
H. Liabilities R. land
I. Operating cycle S. Notes Receivable
J. Revenues T. Prepaid rent
F 1. It is a fundamental convention of accounting that necessitates the recognition of all aspects of an
accounting transaction.
C 2. Assets equal the sum of liabilities and owner’s equity.
A 3. It is an individual accounting record of the movements ( increase or decreases) in specific accounts.
D 4. A guide to accountants and bookkeepers , it is a listing of all the accounts and is usually tailored to
the operation of the business.
B 5. These are resources controlled by the business as a result of past transactions and events and from
which future economic benefits are expected to flow to the business.
I 6. It is the average time that is required to go from cash to cash in producing revenue.
H 7. These are present obligations of an entity arising from past transactions or events, the settlement of
which is expected to result in an outflow from the business of resources embodying economic benefits.
J 8. These are earnings arising from the main line of operations of the business.
G 9. They represent the costs being incurred by the business in generating revenues.
E 10. A system in which a debit entry and a credit entry is entered.
N 11. These are short –term, highly liquid investments that are acquired three months before maturity or
earlier.
S 12. This represents the amount of money owed by the customer or debtor to the business evidenced by
promissory note.
T 13. This refers to an advance payment made by the business to cover for future rental payments
R 14. Not subject to depreciation, this refers to the physical site owned by the business where the
building is situated.
M 15. This includes bills, coins, checks, deposits in banks, and bank drafts.
O 16. This represents manual or automated machines used in the business like computers, laptops, ring
binders, and delivery vehicles.
L 17. This refers to the physical structure owned and used by the business to conduct its business
operation.
P 18. Examples of this are assets include tables, chairs, filing cabinets, and display racks.
Q 19. This represents assets held for sale in the ordinary course of business , in the process of production
for sale , or in the form of materials or supplies to be consumed in the production for sale , or in the form of
materials or supplies to be consumed in the production process or in rendering of services.
K 20. This refers to open accounts which represent the amount of money owed by the customers to the
business.
