AAMI ACCOUNTING 1 EXAM SCRIPT 2026 QUESTIONS
AND SOLUTIONS RATED A+
✔✔A journal entry involving more than two accounts is referred to as - ✔✔A
COMPOUND JOURNAL ENTRY
✔✔Which of the following are considered temporary owner's equity accounts? -
✔✔REVENUE AN EXPENSES
✔✔Cash is an - ✔✔asset
✔✔Capital is a - ✔✔liability account.
✔✔Accounts Receivable is an - ✔✔asset.
✔✔Mortgage Payable is an - ✔✔liabilities
✔✔Capital is an - ✔✔owners equity
✔✔A book of transactions is a: - ✔✔Journal
✔✔A book of accounts is a: - ✔✔Ledger
✔✔The language of business is (a): - ✔✔Ledger
✔✔How you increase an account is the type of balance it has. - ✔✔True
✔✔The following are debit balance accounts - ✔✔Assets and expenses
✔✔The following are credit balance accounts: - ✔✔Liabilities - Owner's equity -
Revenue
✔✔Cash has a credit balance - ✔✔False
✔✔Mortgage Payable has a credit balance. - ✔✔False
✔✔Accounts Receivable has a debit balance - ✔✔False
✔✔Capital has a credit balance. - ✔✔True
✔✔The journal is a - ✔✔book.
✔✔The ledger is a - ✔✔book.
, ✔✔Trial Balance is a - ✔✔Statement
✔✔Trial Balance is - ✔✔informal
✔✔Income statement is - ✔✔Formal / Temporary account / Revenue and expenses
✔✔Statement of owner's equity is - ✔✔formal
✔✔Balance sheet is a - ✔✔permanent account
✔✔The Accounting Equation is - ✔✔Assets= Liabilities+Owner's Equity.
✔✔Expenses have credit balances. - ✔✔False
✔✔Assets have debit balances. - ✔✔True
✔✔Liabilities have credit balances. - ✔✔True
✔✔Owner's Equity has a credit balance. - ✔✔True
✔✔Revenue has a debit balance. - ✔✔False
✔✔The statement of operations is the: - ✔✔Income statement
✔✔The following proves the ledger: - ✔✔The trial balance
✔✔The book of accounts is the: - ✔✔Ledger
✔✔The book of transactions is the: - ✔✔Journal
✔✔Revenue - Expenses = - ✔✔income
✔✔A 12 month period not ending on December 31st is a: - ✔✔Fiscal Year
✔✔Things of value that a business owns are: - ✔✔Assets
✔✔What is included in the Trial Balance? - ✔✔Every account
✔✔Revenue - Expenses = - ✔✔Net income
✔✔The entry to close out revenue is - ✔✔Debit revenue
AND SOLUTIONS RATED A+
✔✔A journal entry involving more than two accounts is referred to as - ✔✔A
COMPOUND JOURNAL ENTRY
✔✔Which of the following are considered temporary owner's equity accounts? -
✔✔REVENUE AN EXPENSES
✔✔Cash is an - ✔✔asset
✔✔Capital is a - ✔✔liability account.
✔✔Accounts Receivable is an - ✔✔asset.
✔✔Mortgage Payable is an - ✔✔liabilities
✔✔Capital is an - ✔✔owners equity
✔✔A book of transactions is a: - ✔✔Journal
✔✔A book of accounts is a: - ✔✔Ledger
✔✔The language of business is (a): - ✔✔Ledger
✔✔How you increase an account is the type of balance it has. - ✔✔True
✔✔The following are debit balance accounts - ✔✔Assets and expenses
✔✔The following are credit balance accounts: - ✔✔Liabilities - Owner's equity -
Revenue
✔✔Cash has a credit balance - ✔✔False
✔✔Mortgage Payable has a credit balance. - ✔✔False
✔✔Accounts Receivable has a debit balance - ✔✔False
✔✔Capital has a credit balance. - ✔✔True
✔✔The journal is a - ✔✔book.
✔✔The ledger is a - ✔✔book.
, ✔✔Trial Balance is a - ✔✔Statement
✔✔Trial Balance is - ✔✔informal
✔✔Income statement is - ✔✔Formal / Temporary account / Revenue and expenses
✔✔Statement of owner's equity is - ✔✔formal
✔✔Balance sheet is a - ✔✔permanent account
✔✔The Accounting Equation is - ✔✔Assets= Liabilities+Owner's Equity.
✔✔Expenses have credit balances. - ✔✔False
✔✔Assets have debit balances. - ✔✔True
✔✔Liabilities have credit balances. - ✔✔True
✔✔Owner's Equity has a credit balance. - ✔✔True
✔✔Revenue has a debit balance. - ✔✔False
✔✔The statement of operations is the: - ✔✔Income statement
✔✔The following proves the ledger: - ✔✔The trial balance
✔✔The book of accounts is the: - ✔✔Ledger
✔✔The book of transactions is the: - ✔✔Journal
✔✔Revenue - Expenses = - ✔✔income
✔✔A 12 month period not ending on December 31st is a: - ✔✔Fiscal Year
✔✔Things of value that a business owns are: - ✔✔Assets
✔✔What is included in the Trial Balance? - ✔✔Every account
✔✔Revenue - Expenses = - ✔✔Net income
✔✔The entry to close out revenue is - ✔✔Debit revenue
