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Unit: Fundamentals of Bookkeeping

### Educational Goals:
- Content Knowledge: Categorize accounting heads, record transactions in a journal, and prepare a ledger and trial balance.
- 21st Century Skills: Use critical thinking and problem-solving skills and communicate effectively.

### Introduction
The accounting process consists of various interconnected steps. In this activity, you will perform three crucial steps of the accounting cycle: preparing a journal, ledger accounts, and a trial balance.

### Directions and Analysis
Task 1: Review Lesson 1 - Account Types.

Classify the following accounting heads for Nikea Inc. as assets, liabilities, incomes, expenses, or equity:

- Asset: Resources owned by a business.
- Liability: Obligations that a business must repay.
- Equity: Owner's total investment in business assets after deducting liabilities.
- Income: The money a business earns by selling a product or service.
- Expenses: Outflows of money (the costs of "doing business").

Type your response here:

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Final answer:

The answer explains the classification of accounting heads for Nikea Inc. into assets, liabilities, equity, income, and expenses.


Explanation:

Asset: Property, equipment, or resources owned by a business, such as buildings or machinery.

Liability: Debts or obligations that a business must settle, like loans or accounts payable.

Equity: Represents the owner's stake in the business after deducting liabilities, indicating the net worth.

Income: Amount earned through selling products or services, contributing to revenue.

Expenses: Costs incurred in running a business, such as rent or salaries.


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