Test your accounting skills with these exercises onElements of Accountingunder theFundamental Accounting Conceptstutorials.

Instructions:For the following exercises, write your answers on a piece of paper. When you're done, check the answers pagehereto see if you got them.

A.For each item, indicate whether it is an Asset, a Liability, or Capital inColumn A. If the item is an asset or a liability, indicate if it is Current or Non-current inColumn B. If the item is capital, placeN/Ain Column B.

AB

1. Tools and equipmentAssetNon-current

2. Salaries payable

3. Additional investment of owner

4. Cash on hand

5. Cash deposited in Prime Bank

6. Delivery truck

7. Obligation to pay supplier

8. Loan from bank, 5 years

9. Investment in long-term bonds

10. Prepaid insurance

11. Patent (an intangible)

12. Withdrawals made by owner

13. Merchandise for sale

14. Building used as office space

15. Accounts receivable

B.For each item, indicate whether it is an Income or an Expense. If it is neither income nor expense, write its proper classification.

1. Rent revenueIncome

2. Rent payable

3. Salaries of employees

4. Sales

5. Light, water, and electricity

6. Loss from flood

7. Accumulated depreciation

8. Prepaid advertising

9. Delivery costs

10. Gain on sale of land

C.For each of the following accounts, indicate whether it is an Asset, Liability, Income, or Expense. If it is an asset or a liability, specify whether it is current or non-current.

1. Merchandise InventoryAssetCurrent

2. Accounts Payable

3. Utilities Expense

4. Service Revenue

5. Computer Equipment

6. Office Supplies

7. Bonds Payable

8. Land

9. Cash

10. Furniture and Fixtures