AAMI ACCOUNTING 1 CORE EXAM 2026 TEST QUESTIONS AND SOLUTIONS RATED

AAMI ACCOUNTING 1 CORE EXAM 2026 TEST
QUESTIONS AND SOLUTIONS RATED A+
✔✔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

✔✔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