AFSP EXAM REVIEW QUESTIONS AND
ANSWERS 100% PASS
Which of the forms of business organizations is a tax-paying entity? - ANS Corporation
For every debit entry to an account or set of accounts, there is an equal amount of credit to an
account or set of accounts. This system of transaction is known as: - ANS Double-entry
accounting system
In the case of a corporation, stockholders have personal obligation for the business debts? T/F -
ANS False
All increases to equity accounts are credit entries while all decreases are debit entries. T/F -
ANS True
Debits are listed before credits in the journal but credits are indented and not debits. T/F -
ANS True
Every transaction involves at most two accounts. T/F - ANS False
A farmer borrowed money from the farm credit service. The 2 accounts involved are: -
ANS Asset (cash) and Liability (Notes Payable)
The business records of a sole proprietorship should include the proprietor's finances. T/F -
ANS True
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS 100% PASS
Which of the forms of business organizations is a tax-paying entity? - ANS Corporation
For every debit entry to an account or set of accounts, there is an equal amount of credit to an
account or set of accounts. This system of transaction is known as: - ANS Double-entry
accounting system
In the case of a corporation, stockholders have personal obligation for the business debts? T/F -
ANS False
All increases to equity accounts are credit entries while all decreases are debit entries. T/F -
ANS True
Debits are listed before credits in the journal but credits are indented and not debits. T/F -
ANS True
Every transaction involves at most two accounts. T/F - ANS False
A farmer borrowed money from the farm credit service. The 2 accounts involved are: -
ANS Asset (cash) and Liability (Notes Payable)
The business records of a sole proprietorship should include the proprietor's finances. T/F -
ANS True
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
