Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each of the following accounts with its proper account group from the groups listed below.
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Liabilities Patents
Assets Fees Earned
Revenue Prepaid Insurance
Owner's Equity Unearned Rent
Chris Clark, Drawing

Matching accounts with their proper account groups:

Accounts                    Proper account group

Unearned Rent           Liabilities

Patents                         Assets

Prepaid Insurance       Assets

Fees Earned                Revenue

Chris Clark, Drawing   Owner's Equity

Explanation:

a) Data and Calculations:

Liabilities

Patents

Assets

Fees Earned

Revenue

Prepaid Insurance

Owner's Equity

Unearned Rent

Chris Clark, Drawing

b) Some accounts can be grouped according to their impact on the accounting equation, as assets, liabilities, and equity.  Other accounts can also be grouped according to their impact on the net income, as either revenues or expenses.  From these, one can conclude that there are basically five types of accounts.  They are assets, liabilities, equity (balance sheet) accounts, and revenue and expenses (income statement) accounts.

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