AAMI ACCOUNTING 1 2026 EVALUATION EXAM
QUESTIONS AND SOLUTIONS RATED A+
✔✔Trial Balance - ✔✔in order to prove the equity of debits and credits we would
perform or prepare a?
✔✔Account - ✔✔record showing increases and decreases in a single asset, liability, or
owners equity item.
✔✔Debit Side - ✔✔left side of an account.
✔✔Credit Side - ✔✔right side of an account.
✔✔General Ledger - ✔✔entire group of accounts for a business's assets, liabilities, and
owners equity.
✔✔Debiting - ✔✔entering an amount on the left side of an account.
✔✔Crediting - ✔✔entering an amount on the right side of an account.
✔✔Asset Accounts - ✔✔- records increases as debits.
- records decreases as credits.
✔✔Liability and Owners Equity Accounts - ✔✔- record increases as credits
- record decreases as debits.
✔✔Source Documents - ✔✔paper evidence of a transaction.
✔✔Double Entry - ✔✔Every transaction in accounting requires that at least one debit
and one credit be affected
✔✔Dr - ✔✔debit abbreviation
✔✔Cr - ✔✔credit abbreviation
✔✔Increase - ✔✔an increase to the revenue account equated to an ___________ in
the owners equity account.
✔✔Debit to Cash Credit to Capital - ✔✔how is an increase to the capital account
recorded?
✔✔Debit Withdrawals Credit Cash - ✔✔how is a decrease to the capital account
recorded?
, ✔✔Decrease - ✔✔a debit to the Capital account translates to a __________ to the
Owner's Equity account.
✔✔Increases - ✔✔an increase in revenue, __________ owners equity.
✔✔Decreases - ✔✔a decrease in revenue, __________ owners equity.
✔✔Decreases - ✔✔an increase in expenses, __________ owners equity.
✔✔Increases - ✔✔a decrease in expenses, __________ owners equity.
✔✔Debit - ✔✔asset accounts should have a debit or credit balance?
✔✔Debit - ✔✔expense accounts should have a debit or credit balance?
✔✔Credit - ✔✔liability accounts should have a debit or credit balance?
✔✔Credit - ✔✔capital accounts should have a debit or credit balance?
✔✔Credit - ✔✔revenue accounts should have a debit or credit balance?
✔✔Assets Expenses - ✔✔which accounts should have a debit balance?
✔✔Liability, Capital, Revenue - ✔✔which accounts should have a credit balance?
✔✔Accounting Period - ✔✔formal financial statements are prepared at the end of each.
✔✔Fiscal Year - ✔✔any accounting period of twelve consecutive months.
✔✔3 - ✔✔how many formal financial statements are there?
✔✔Income Statement/Profit and Loss - ✔✔this formal financial statement contains all
information relating to revenue and expenses for the fiscal period.
✔✔Income Statement - ✔✔first we list the total revenue (which is a credit)
second we itemize the total of each expense
third we take the sum of all the expenses and put that figure under the revenue amount
in the credit column and subtract
the result of this is Net Income
✔✔Statement of Owners Equity - ✔✔this statement reflects any changes made or
changes which occured to the Owners Equity during the fiscal period that the statement
is being prepared for.
QUESTIONS AND SOLUTIONS RATED A+
✔✔Trial Balance - ✔✔in order to prove the equity of debits and credits we would
perform or prepare a?
✔✔Account - ✔✔record showing increases and decreases in a single asset, liability, or
owners equity item.
✔✔Debit Side - ✔✔left side of an account.
✔✔Credit Side - ✔✔right side of an account.
✔✔General Ledger - ✔✔entire group of accounts for a business's assets, liabilities, and
owners equity.
✔✔Debiting - ✔✔entering an amount on the left side of an account.
✔✔Crediting - ✔✔entering an amount on the right side of an account.
✔✔Asset Accounts - ✔✔- records increases as debits.
- records decreases as credits.
✔✔Liability and Owners Equity Accounts - ✔✔- record increases as credits
- record decreases as debits.
✔✔Source Documents - ✔✔paper evidence of a transaction.
✔✔Double Entry - ✔✔Every transaction in accounting requires that at least one debit
and one credit be affected
✔✔Dr - ✔✔debit abbreviation
✔✔Cr - ✔✔credit abbreviation
✔✔Increase - ✔✔an increase to the revenue account equated to an ___________ in
the owners equity account.
✔✔Debit to Cash Credit to Capital - ✔✔how is an increase to the capital account
recorded?
✔✔Debit Withdrawals Credit Cash - ✔✔how is a decrease to the capital account
recorded?
, ✔✔Decrease - ✔✔a debit to the Capital account translates to a __________ to the
Owner's Equity account.
✔✔Increases - ✔✔an increase in revenue, __________ owners equity.
✔✔Decreases - ✔✔a decrease in revenue, __________ owners equity.
✔✔Decreases - ✔✔an increase in expenses, __________ owners equity.
✔✔Increases - ✔✔a decrease in expenses, __________ owners equity.
✔✔Debit - ✔✔asset accounts should have a debit or credit balance?
✔✔Debit - ✔✔expense accounts should have a debit or credit balance?
✔✔Credit - ✔✔liability accounts should have a debit or credit balance?
✔✔Credit - ✔✔capital accounts should have a debit or credit balance?
✔✔Credit - ✔✔revenue accounts should have a debit or credit balance?
✔✔Assets Expenses - ✔✔which accounts should have a debit balance?
✔✔Liability, Capital, Revenue - ✔✔which accounts should have a credit balance?
✔✔Accounting Period - ✔✔formal financial statements are prepared at the end of each.
✔✔Fiscal Year - ✔✔any accounting period of twelve consecutive months.
✔✔3 - ✔✔how many formal financial statements are there?
✔✔Income Statement/Profit and Loss - ✔✔this formal financial statement contains all
information relating to revenue and expenses for the fiscal period.
✔✔Income Statement - ✔✔first we list the total revenue (which is a credit)
second we itemize the total of each expense
third we take the sum of all the expenses and put that figure under the revenue amount
in the credit column and subtract
the result of this is Net Income
✔✔Statement of Owners Equity - ✔✔this statement reflects any changes made or
changes which occured to the Owners Equity during the fiscal period that the statement
is being prepared for.
