AAMI ACCOUNTING 2 CORE REVIEW ALL
QUESTIONS AND ANSWERS SURE A+
✔✔Left side - ✔✔On what side are assets listed?
✔✔Where are liabilities listed on a balance sheet? - ✔✔Upper right side
✔✔Under liabilities on the right side - ✔✔Where is Oners Equity listed on a balance
sheet?
✔✔Exchange of one item of value for another - ✔✔Define Business Transaction
✔✔2 items - ✔✔At least how many items are affected in a business transation?
✔✔Revenue - ✔✔Inflow of assets from business operations
✔✔Revenue - ✔✔Increases Equity
✔✔Expenses - ✔✔Costs of operating a business
✔✔Expenses - ✔✔Decrease Equity
✔✔Net Income - ✔✔Amount remaining when revenu exeeds expenses
✔✔Net Loss - ✔✔Amount remaining when expenses exceed revenue
✔✔Net Profit - ✔✔Net Income is also called _________
✔✔Accounts Receivable - ✔✔Amount customers have promised to pay in the future
, ✔✔Account - ✔✔Record showing increases and decreases in a single asset, liability, or
Owners Equity item
✔✔Debit Side - ✔✔Left side of an account is what?
✔✔Credit Side - ✔✔Right side of an account is what?
✔✔Where do you put a transaction if there is no special journal for it - ✔✔General
Journal
✔✔Includes at least 1 debit and 1 credit - ✔✔A business transaction includes at least
_______?
✔✔As debits - ✔✔Asset Accounts record increases as?
✔✔Credits - ✔✔Asset Accounts record decreases as?
✔✔Credits - ✔✔Liability and Owners Equity accounts recored increases as?
✔✔Debits - ✔✔Liability and owners equity accounts record decreases as?
✔✔Source Documents - ✔✔Paper evidence of a transaction
✔✔Account Balance - ✔✔Difference between total debits and total credits in an account
✔✔Pencil Footing - ✔✔Total or balance written in small pencil figures
✔✔Recorded as debits - ✔✔Increase in assets are recorded as?
✔✔Credits - ✔✔Decrease in assets are recorded as?
✔✔Credits - ✔✔Increase in liabilities or owners equity are recorded as?
✔✔Debits - ✔✔Decrease in liability or owners equity is recorded as?
✔✔Withdrawls Account, Revenue, Expenses, Account - ✔✔What are the owners equity
accounts?
✔✔1. find the balance of each account 2. list all the accounts 3. add debits and credits
to see if they are equal - ✔✔What are the steps to prepareing a trial balance?
✔✔Accounting Period - ✔✔Period of time for which financial results of business are
sumarized
QUESTIONS AND ANSWERS SURE A+
✔✔Left side - ✔✔On what side are assets listed?
✔✔Where are liabilities listed on a balance sheet? - ✔✔Upper right side
✔✔Under liabilities on the right side - ✔✔Where is Oners Equity listed on a balance
sheet?
✔✔Exchange of one item of value for another - ✔✔Define Business Transaction
✔✔2 items - ✔✔At least how many items are affected in a business transation?
✔✔Revenue - ✔✔Inflow of assets from business operations
✔✔Revenue - ✔✔Increases Equity
✔✔Expenses - ✔✔Costs of operating a business
✔✔Expenses - ✔✔Decrease Equity
✔✔Net Income - ✔✔Amount remaining when revenu exeeds expenses
✔✔Net Loss - ✔✔Amount remaining when expenses exceed revenue
✔✔Net Profit - ✔✔Net Income is also called _________
✔✔Accounts Receivable - ✔✔Amount customers have promised to pay in the future
, ✔✔Account - ✔✔Record showing increases and decreases in a single asset, liability, or
Owners Equity item
✔✔Debit Side - ✔✔Left side of an account is what?
✔✔Credit Side - ✔✔Right side of an account is what?
✔✔Where do you put a transaction if there is no special journal for it - ✔✔General
Journal
✔✔Includes at least 1 debit and 1 credit - ✔✔A business transaction includes at least
_______?
✔✔As debits - ✔✔Asset Accounts record increases as?
✔✔Credits - ✔✔Asset Accounts record decreases as?
✔✔Credits - ✔✔Liability and Owners Equity accounts recored increases as?
✔✔Debits - ✔✔Liability and owners equity accounts record decreases as?
✔✔Source Documents - ✔✔Paper evidence of a transaction
✔✔Account Balance - ✔✔Difference between total debits and total credits in an account
✔✔Pencil Footing - ✔✔Total or balance written in small pencil figures
✔✔Recorded as debits - ✔✔Increase in assets are recorded as?
✔✔Credits - ✔✔Decrease in assets are recorded as?
✔✔Credits - ✔✔Increase in liabilities or owners equity are recorded as?
✔✔Debits - ✔✔Decrease in liability or owners equity is recorded as?
✔✔Withdrawls Account, Revenue, Expenses, Account - ✔✔What are the owners equity
accounts?
✔✔1. find the balance of each account 2. list all the accounts 3. add debits and credits
to see if they are equal - ✔✔What are the steps to prepareing a trial balance?
✔✔Accounting Period - ✔✔Period of time for which financial results of business are
sumarized
