AAMI ACCOUNTING ONE FINAL REVIEW
QUESTIONS WITH 100% CORRECT
ANSWERS
How do you increase an asset account? -Correct Answer-Debit
How do you decrease an asset account? -Correct Answer-Credit
How do you increase a liability account? -Correct Answer-Credit
How do you decrease a liability account? -Correct Answer-debit
How do you increase revenue? -Correct Answer-Credit
How do you increase expenses? -Correct Answer-debit
What is the accounting equation? -Correct Answer-Assets=Liabilities+Owner's Equity
Cash is a(n): -Correct Answer-Asset
Revenue is a(n): -Correct Answer-Owner's Equity
Accounts Receivable is a(n): -Correct Answer-Asset
Mortgage Payable is a(n): -Correct Answer-Liability
Accounts Payable is a(n): -Correct Answer-Liability
Office Equipment is a(n): -Correct Answer-Asset
, Capital is a(n): -Correct Answer-Owner's Equity
Automotive Equipment is a(n): -Correct Answer-Asset
The book of original entry is -Correct Answer-The Journal
What account would you credit if you did a funeral and received cash? -Correct Answer-Revenue
What account would you debit if you did a funeral for cash? -Correct Answer-Cash
What account would you credit if you did a funeral and did not receive the funds from the family but are
owed on account? -Correct Answer-Revenue
What account would you debit if you did a funeral and did not receive the funds from the family but are
owed on account? -Correct Answer-Cash
What account would you debit if you invested cash in your business? -Correct Answer-Cash
What account would you credit if you invested cash in your business? -Correct Answer-Capital
Accounting is based on the theory of: -Correct Answer-basis and fundamental ideas, or assumptions,
underlying the practice of financial accounting
A journal entry involving more than two accounts is referred to as -Correct Answer-A COMPOUND
JOURNAL ENTRY
Which of the following are considered temporary owner's equity accounts? -Correct Answer-REVENUE
AN EXPENSES
QUESTIONS WITH 100% CORRECT
ANSWERS
How do you increase an asset account? -Correct Answer-Debit
How do you decrease an asset account? -Correct Answer-Credit
How do you increase a liability account? -Correct Answer-Credit
How do you decrease a liability account? -Correct Answer-debit
How do you increase revenue? -Correct Answer-Credit
How do you increase expenses? -Correct Answer-debit
What is the accounting equation? -Correct Answer-Assets=Liabilities+Owner's Equity
Cash is a(n): -Correct Answer-Asset
Revenue is a(n): -Correct Answer-Owner's Equity
Accounts Receivable is a(n): -Correct Answer-Asset
Mortgage Payable is a(n): -Correct Answer-Liability
Accounts Payable is a(n): -Correct Answer-Liability
Office Equipment is a(n): -Correct Answer-Asset
, Capital is a(n): -Correct Answer-Owner's Equity
Automotive Equipment is a(n): -Correct Answer-Asset
The book of original entry is -Correct Answer-The Journal
What account would you credit if you did a funeral and received cash? -Correct Answer-Revenue
What account would you debit if you did a funeral for cash? -Correct Answer-Cash
What account would you credit if you did a funeral and did not receive the funds from the family but are
owed on account? -Correct Answer-Revenue
What account would you debit if you did a funeral and did not receive the funds from the family but are
owed on account? -Correct Answer-Cash
What account would you debit if you invested cash in your business? -Correct Answer-Cash
What account would you credit if you invested cash in your business? -Correct Answer-Capital
Accounting is based on the theory of: -Correct Answer-basis and fundamental ideas, or assumptions,
underlying the practice of financial accounting
A journal entry involving more than two accounts is referred to as -Correct Answer-A COMPOUND
JOURNAL ENTRY
Which of the following are considered temporary owner's equity accounts? -Correct Answer-REVENUE
AN EXPENSES
