Basic Accounting Equation –Worksheet

Accounting Equation

Capital
Assets Liabilities Owner’s Equity
= + Revenues

Expenses

Drawings

Classify each item and tick (√) in the appropriate column.

ITEM ASSETS = LIABILITIES + OWNER’S EQUITY
Capital Revenues Expenses Drawings
Cash
Accounts payable
Share capital
Accounts receivable
Equipment
Cash drawings
Van
Employee salaries
Notes payable
Interest revenue
Inventory
Freight out
Sales
Purchases
Commissions revenue
Utilities expenses
Sales returns and allowances
Purchases discounts
Purchases returns and allowances
Insurance expenses
Service revenue
Retained earnings
Common stock
Depreciation expenses-Equipment
Mortgage
Long term debt
Freight in
Investments
Patents
Bank
Supplies Expenses
Overdraft
Supplies