AAMI ACCOUNTING 1 FINAL EXAM 2026 QUESTIONS
AND SOLUTIONS RATED A+
✔✔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
✔✔The entry to close out expenses is: - ✔✔Credit expenses
✔✔Which of the following can be an entry to close out Income Summary? - ✔✔Debit
income summary
✔✔There is a profit when the Income Summary has a credit balance after Revenue and
Expenses have been closed out. - ✔✔true
✔✔There is a loss when the Income Summary has a debit balance after Revenue and
Expenses have been closed out - ✔✔True
✔✔the Income Statement is an informal financial statement. - ✔✔False
✔✔The Trial Balance is a formal financial statement. - ✔✔False
✔✔The capital account gets closed out to - ✔✔Account does not closed out
✔✔180/360= - ✔✔1/2
✔✔90/360= - ✔✔1/4
, ✔✔simple interest - ✔✔principal X interest rate X number of days of borrowing / 360
✔✔drawing account is a - ✔✔temporary account / also referred to as owner's
withdrawals
✔✔prepaid expenses are - ✔✔assets ( items like rent, insurance or utilities)
✔✔Accounting is - ✔✔Language of business/ to communicate financial information
✔✔accounting is base on - ✔✔double entry
✔✔assets are - ✔✔things of value that a busniess own or property
✔✔labilities are - ✔✔debits that a business owes
✔✔Assets list - ✔✔Cash
Accounts receivable
Notes receivable
Building
Automotive equipment
office equipment
supplies
land
✔✔Liabilities list - ✔✔Accounts payables
notes payables
loans payables
mortgage payable
✔✔owner's equity list - ✔✔Capital
revenue
✔✔Expenses list - ✔✔Salaries expense
utilities expense
insurance expense
rent expense
repair / maintenance expense
✔✔account receivable is - ✔✔unwritten promise by costomer to pay at later date
✔✔note receivable is - ✔✔a written promise by customer to pay at later date
✔✔account payable is - ✔✔unwritten promise to pay creditors at a later date
AND SOLUTIONS RATED A+
✔✔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
✔✔The entry to close out expenses is: - ✔✔Credit expenses
✔✔Which of the following can be an entry to close out Income Summary? - ✔✔Debit
income summary
✔✔There is a profit when the Income Summary has a credit balance after Revenue and
Expenses have been closed out. - ✔✔true
✔✔There is a loss when the Income Summary has a debit balance after Revenue and
Expenses have been closed out - ✔✔True
✔✔the Income Statement is an informal financial statement. - ✔✔False
✔✔The Trial Balance is a formal financial statement. - ✔✔False
✔✔The capital account gets closed out to - ✔✔Account does not closed out
✔✔180/360= - ✔✔1/2
✔✔90/360= - ✔✔1/4
, ✔✔simple interest - ✔✔principal X interest rate X number of days of borrowing / 360
✔✔drawing account is a - ✔✔temporary account / also referred to as owner's
withdrawals
✔✔prepaid expenses are - ✔✔assets ( items like rent, insurance or utilities)
✔✔Accounting is - ✔✔Language of business/ to communicate financial information
✔✔accounting is base on - ✔✔double entry
✔✔assets are - ✔✔things of value that a busniess own or property
✔✔labilities are - ✔✔debits that a business owes
✔✔Assets list - ✔✔Cash
Accounts receivable
Notes receivable
Building
Automotive equipment
office equipment
supplies
land
✔✔Liabilities list - ✔✔Accounts payables
notes payables
loans payables
mortgage payable
✔✔owner's equity list - ✔✔Capital
revenue
✔✔Expenses list - ✔✔Salaries expense
utilities expense
insurance expense
rent expense
repair / maintenance expense
✔✔account receivable is - ✔✔unwritten promise by costomer to pay at later date
✔✔note receivable is - ✔✔a written promise by customer to pay at later date
✔✔account payable is - ✔✔unwritten promise to pay creditors at a later date
