Accounting 101

Three Measurable Learning Objectives

Adult Education Accounting 101

1.      Given a list of alternative accounting terms on a multiple-choice test, the student will select the definitions for the terms debit and credit with 100% accuracy.

2.      The student will differentiate between a debit and credit on the number line by placing a circle around the debit and a line under the credit.

3.      The student will show an understanding of how to record accounting transactions by placing the debit or credit in the appropriate column from a list of accounting transactions.
A 

Accounting 101 Test

Multiple Choices

Select the correct definition of the following accounting terms.

______1.  Debit:

a.      Increase in liabilities, equity and income and decreases in assets and expenses.

b.      Tangible or intangible property that a Corporation controls.

c.       The use of assets to obtain an established goal.

d.       Increase in value of assets and expenses and decrease income.

e.        A detailed maximum spending plan by line-item covering a time period.

_____2.  Credit:

a.        An exchange of goods or services for other goods or services.

b.       Increase in liabilities, equity and income and decrease in assets and expenses.

c.        Tangible or intangible property that a Corporation controls.

d.       A line-item report detailing the amounts spent.

e.        Increase in value of assets and expenses and decrease income.

 

In the month of October, R. Davis Office Supply Co. recorded the following accounting transactions.  Locate the matching debit or credit on the “number line” below, then circle the debits and underline the credits.   

1.      Paid gas bill $100

2.      Sold 2 printers @ $125/each

3.      Purchase 5 cases of Xerox paper at $30/case

4.      Sold 10 book @ $20/each

5.      Purchase new cash register $200

6.      Paid electric bill $300

7.      Sold 50 calculator at $2/each

_________________________________________________________________

             -250     -200     -150     -100     -50        0        50       100      150      200     250

Read the accounting transactions listed below and decide if it is a debit or credit, then place an “X” under the appropriate column.                                                                                                                       

                                                                                                   DEBIT _/_ CREDIT

1.      Purchased raw materials $5,500                                                    

2.      Accounts Receivable collected $10,450                                          

3.      Paid mortgage $12,000                                                                                

4.      Received rental income from office space $5,000                                                     

5.      Sold Building $125,000                                                                                            

6.      Reimbursed petty cash $500                                                                      

7.      Paid employee wages $255,000                                                                             

8.      Paid utilities $1,200                                                                                                

9.      Investment Income $6,500                                                                    

 

ESSAY  QUESTION

Explain how debits and credits are used in the double-entry bookkeeping system and 

give an example.