AAMI Accounting 1 Final Review exam 2023 with 100%
correct answers
How do you increase an asset account? - ANSWER Debit
How do you decrease an asset account? - ANSWER Credit
How do you increase a liability account? - ANSWER Credit
How do you decrease a liability account? - ANSWER debit
How do you increase revenue? - ANSWER Credit
How do you increase expenses? - ANSWER debit
What is the accounting equation? - ANSWER Assets=Liabilities+Owner's Equity
Cash is a(n): - ANSWER Asset
Revenue is a(n): - ANSWER Owner's Equity
Accounts Receivable is a(n): - ANSWER Asset
Mortgage Payable is a(n): - ANSWER Liability
Accounts Payable is a(n): - ANSWER Liability
Office Equipment is a(n): - ANSWER Asset
Capital is a(n): - ANSWER Owner's Equity
Automotive Equipment is a(n): - ANSWER Asset
The book of original entry is - ANSWER The Journal
What account would you credit if you did a funeral and received cash? - ANSWER
Revenue
What account would you debit if you did a funeral for cash? - 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? - 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? - ANSWER Cash
, What account would you debit if you invested cash in your business? - ANSWER
Cash
What account would you credit if you invested cash in your business? - ANSWER
Capital
Accounting is based on the theory of: - 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 - ANSWER A
COMPOUND JOURNAL ENTRY
Which of the following are considered temporary owner's equity accounts? -
ANSWER REVENUE AN EXPENSES
Cash is an - ANSWER asset
Capital is a - ANSWER liability account.
Accounts Receivable is an - ANSWER asset.
Mortgage Payable is an - ANSWER liabilities
Capital is an - ANSWER owners equity
A book of transactions is a: - ANSWER Journal
A book of accounts is a: - ANSWER Ledger
The language of business is (a): - ANSWER Ledger
How you increase an account is the type of balance it has. - ANSWER True
The following are debit balance accounts - ANSWER Assets and expenses
The following are credit balance accounts: - ANSWER Liabilities - Owner's equity -
Revenue
Cash has a credit balance - ANSWER False
Mortgage Payable has a credit balance. - ANSWER False
Accounts Receivable has a debit balance - ANSWER False
Capital has a credit balance. - ANSWER True
The journal is a - ANSWER book.
The ledger is a - ANSWER book.
correct answers
How do you increase an asset account? - ANSWER Debit
How do you decrease an asset account? - ANSWER Credit
How do you increase a liability account? - ANSWER Credit
How do you decrease a liability account? - ANSWER debit
How do you increase revenue? - ANSWER Credit
How do you increase expenses? - ANSWER debit
What is the accounting equation? - ANSWER Assets=Liabilities+Owner's Equity
Cash is a(n): - ANSWER Asset
Revenue is a(n): - ANSWER Owner's Equity
Accounts Receivable is a(n): - ANSWER Asset
Mortgage Payable is a(n): - ANSWER Liability
Accounts Payable is a(n): - ANSWER Liability
Office Equipment is a(n): - ANSWER Asset
Capital is a(n): - ANSWER Owner's Equity
Automotive Equipment is a(n): - ANSWER Asset
The book of original entry is - ANSWER The Journal
What account would you credit if you did a funeral and received cash? - ANSWER
Revenue
What account would you debit if you did a funeral for cash? - 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? - 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? - ANSWER Cash
, What account would you debit if you invested cash in your business? - ANSWER
Cash
What account would you credit if you invested cash in your business? - ANSWER
Capital
Accounting is based on the theory of: - 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 - ANSWER A
COMPOUND JOURNAL ENTRY
Which of the following are considered temporary owner's equity accounts? -
ANSWER REVENUE AN EXPENSES
Cash is an - ANSWER asset
Capital is a - ANSWER liability account.
Accounts Receivable is an - ANSWER asset.
Mortgage Payable is an - ANSWER liabilities
Capital is an - ANSWER owners equity
A book of transactions is a: - ANSWER Journal
A book of accounts is a: - ANSWER Ledger
The language of business is (a): - ANSWER Ledger
How you increase an account is the type of balance it has. - ANSWER True
The following are debit balance accounts - ANSWER Assets and expenses
The following are credit balance accounts: - ANSWER Liabilities - Owner's equity -
Revenue
Cash has a credit balance - ANSWER False
Mortgage Payable has a credit balance. - ANSWER False
Accounts Receivable has a debit balance - ANSWER False
Capital has a credit balance. - ANSWER True
The journal is a - ANSWER book.
The ledger is a - ANSWER book.
