AAMI ACCOUNTING 1 MAIN EXAMINATION 2026
QUESTIONS AND SOLUTIONS RATED A+
✔✔WHAT IS THE JOURNAL ENTRY WHEN A COMPANY MAKES A SALE ON
ACCOUNT? - ✔✔DR. ACCOUNTS RECEIVABLE
CR. SALES
✔✔WHAT IS THE JOURNAL ENTRY WHEN A COMPANY RECIVES OAYMENT
FROM AN ACCOUNT WHEN AN ERAL PAYMENT DISCOUNT WAS UNTILIZED BY
THE CUSTOMER? - ✔✔DR.CASH
DR.SALES DISCOUNT
CR.ACCOUNTS RECEIVABLE
✔✔SALES TAX PAYABLE IS AN - ✔✔LIABILITY
✔✔WHAT IS THE JOURNAL ENTRY TO RECORD THE RETUN OF GOODS SOLD
FOR CASH? - ✔✔DR. SALES RETURNS AND ALLOWANCES
CR. CASH
✔✔WHAT IS THE JOURNAL ENTRY TO RECORD THE RETUN OF GOODS SOLD
ON ACCOUNT? - ✔✔DR. SALES REURNS AND ALLOWANCES
CR. ACCOUNTDS RECIVABLE
✔✔WHAT IS THE JORNAL ENTRY WHEN A COMPANY SELLS GOODS FOR CASH
BUT ALSO IS REUIRED TO CHARGE SALES TAX? - ✔✔DR.CASH
CR.SALES
CR.SALES TAX PAYABLE
✔✔WHAT IS THE JORNAL ENTRY TO RECORD THE PAYMENT OF SALES TAX TO
THE GOVERNMENT ? - ✔✔DR.SALES TAX PAYABLE
CR.CASH
✔✔Sales - cost of goods sold= - ✔✔Gross profit
✔✔Sales- cost of goods sold - all other operating expenses= - ✔✔Net profit
✔✔Another term for sales is - ✔✔Revenue
✔✔The best method of inventory valuation is - ✔✔Specific identification
✔✔Total cost / total units available for sale= - ✔✔Weighted Average
✔✔The concept that prices rise over time is - ✔✔Inflation
, ✔✔In an inflationary period, what method of inventory valuation would lower profits? -
✔✔LIFO
✔✔In an inflationary period, what method if inventory valuation would increase profits? -
✔✔FIFO
✔✔Revenue- expenses = - ✔✔net income
✔✔What method of inventory valuation are we most likely to use as funeral directors? -
✔✔Specific Identification
✔✔Sales - CGS = - ✔✔GROSS PROFIT
✔✔If sales are $2,000 and gross profit is $500 , what was the cost of goods sold? -
✔✔$1,500
✔✔Beginning inventory + Net purchases = - ✔✔Cost of goods available for sale
✔✔Beginning inventory + Net purchases - Ending inventory = - ✔✔Cost of goods sold
✔✔FICA stands for - ✔✔Federal insurance contributions Act
✔✔Income before any payroll deductions is referred to as - ✔✔Gross pay
✔✔The wage and tax statement is - ✔✔W2
✔✔The employee's withholding certificate is referred to as the - ✔✔W4
✔✔What account is debited when an employer pays his or her employees. - ✔✔Payroll
expense
✔✔Social security is financed by - ✔✔FICA
✔✔The periodic allocation of costs of assets is referred to as - ✔✔Depreciation
✔✔The periodic allocation of costs of natural resources is referred to as - ✔✔Depletion
✔✔The periodic allocation of costs of intangible assets is referred to as -
✔✔Amortization
✔✔The cost added to the value of an asset's acquisition cost and thus depreciated is
referred to as - ✔✔Capitalized Cost
QUESTIONS AND SOLUTIONS RATED A+
✔✔WHAT IS THE JOURNAL ENTRY WHEN A COMPANY MAKES A SALE ON
ACCOUNT? - ✔✔DR. ACCOUNTS RECEIVABLE
CR. SALES
✔✔WHAT IS THE JOURNAL ENTRY WHEN A COMPANY RECIVES OAYMENT
FROM AN ACCOUNT WHEN AN ERAL PAYMENT DISCOUNT WAS UNTILIZED BY
THE CUSTOMER? - ✔✔DR.CASH
DR.SALES DISCOUNT
CR.ACCOUNTS RECEIVABLE
✔✔SALES TAX PAYABLE IS AN - ✔✔LIABILITY
✔✔WHAT IS THE JOURNAL ENTRY TO RECORD THE RETUN OF GOODS SOLD
FOR CASH? - ✔✔DR. SALES RETURNS AND ALLOWANCES
CR. CASH
✔✔WHAT IS THE JOURNAL ENTRY TO RECORD THE RETUN OF GOODS SOLD
ON ACCOUNT? - ✔✔DR. SALES REURNS AND ALLOWANCES
CR. ACCOUNTDS RECIVABLE
✔✔WHAT IS THE JORNAL ENTRY WHEN A COMPANY SELLS GOODS FOR CASH
BUT ALSO IS REUIRED TO CHARGE SALES TAX? - ✔✔DR.CASH
CR.SALES
CR.SALES TAX PAYABLE
✔✔WHAT IS THE JORNAL ENTRY TO RECORD THE PAYMENT OF SALES TAX TO
THE GOVERNMENT ? - ✔✔DR.SALES TAX PAYABLE
CR.CASH
✔✔Sales - cost of goods sold= - ✔✔Gross profit
✔✔Sales- cost of goods sold - all other operating expenses= - ✔✔Net profit
✔✔Another term for sales is - ✔✔Revenue
✔✔The best method of inventory valuation is - ✔✔Specific identification
✔✔Total cost / total units available for sale= - ✔✔Weighted Average
✔✔The concept that prices rise over time is - ✔✔Inflation
, ✔✔In an inflationary period, what method of inventory valuation would lower profits? -
✔✔LIFO
✔✔In an inflationary period, what method if inventory valuation would increase profits? -
✔✔FIFO
✔✔Revenue- expenses = - ✔✔net income
✔✔What method of inventory valuation are we most likely to use as funeral directors? -
✔✔Specific Identification
✔✔Sales - CGS = - ✔✔GROSS PROFIT
✔✔If sales are $2,000 and gross profit is $500 , what was the cost of goods sold? -
✔✔$1,500
✔✔Beginning inventory + Net purchases = - ✔✔Cost of goods available for sale
✔✔Beginning inventory + Net purchases - Ending inventory = - ✔✔Cost of goods sold
✔✔FICA stands for - ✔✔Federal insurance contributions Act
✔✔Income before any payroll deductions is referred to as - ✔✔Gross pay
✔✔The wage and tax statement is - ✔✔W2
✔✔The employee's withholding certificate is referred to as the - ✔✔W4
✔✔What account is debited when an employer pays his or her employees. - ✔✔Payroll
expense
✔✔Social security is financed by - ✔✔FICA
✔✔The periodic allocation of costs of assets is referred to as - ✔✔Depreciation
✔✔The periodic allocation of costs of natural resources is referred to as - ✔✔Depletion
✔✔The periodic allocation of costs of intangible assets is referred to as -
✔✔Amortization
✔✔The cost added to the value of an asset's acquisition cost and thus depreciated is
referred to as - ✔✔Capitalized Cost
