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Account Classification Warm-Up

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Account Classification Warm-Up

Accounting ledger and calculator illustration

📊 Part 1: Account Classification

Instructions: For each item below, identify which type of account it is by ticking the correct box.

1. Cash at Bank

Asset

Liability

Equity

Revenue

Expense

2. Accounts Payable

Asset

Liability

Equity

Revenue

Expense

3. Sales Revenue

Asset

Liability

Equity

Revenue

Expense

4. Office Equipment

Asset

Liability

Equity

Revenue

Expense

5. Rent Expense

Asset

Liability

Equity

Revenue

Expense

6. Owner's Capital

Asset

Liability

Equity

Revenue

Expense

📝 Part 2: Basic Ledger Entries

Instructions: For each transaction below, write a simple ledger entry showing which accounts are affected and whether they increase (+) or decrease (-).

7. The business purchased office supplies for $150 cash.

Debit: _________________ ($______)

Credit: ________________ ($______)

8. The business received $2,000 cash from sales.

Debit: _________________ ($______)

Credit: ________________ ($______)

9. The business paid $800 for monthly rent.

Debit: _________________ ($______)

Credit: ________________ ($______)

10. The business bought equipment for $5,000 on credit.

Debit: _________________ ($______)

Credit: ________________ ($______)

🎯 Part 3: Quick Challenge

11. List three examples of current assets that a retail business might have:

a) _________________________

b) _________________________

c) _________________________

12. Explain in one sentence why it's important to classify accounts correctly:

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