AAMI Accounting ONE Exam Prep Study
Guide Detailed A+ Questions and Answers
Verified Solutions Latest Update 2026/2027
Answer:
Asset
●● Which of the following is an example of a liability:
Answer:
Accounts Payable
●● True or False - The expanded accounting equation is: Assets = Liabilities + Owner's Equity
Answer:
False
●● Gross profit minus expenses equals:
Answer:
Net Profit
●● Which of the following is not factored into computing Owner's Equity in the expanded
Accounting equation:
Answer:
Owner's Equity = [Capital In - Withdrawals] + [Revenue - Expenses]
●● Revenue after deducting costs of goods sold is called:
Answer:
Gross Profit
●● John Smith gives his business $10,000.00 from his own personal funds. Which of the
following accounts does this transaction affect?
Answer:
, Capital
●● True or False - The basic accounting equation is: Assets = Liabilities + Owner's Equity
Answer:
True
●● A firm has $15,000.00 in liabilities and $22,500.00 in assets. In order to compute the Basic
Accounting Equation, what must Owner's Equity be?
Answer:
$7,500
●● Another name for ownership is:
Answer:
Equity
●● John Smith takes $5,000.00 back from his business to repay himself some of the money he
loaned to his business. Which account would be affected:
Answer:
Withdrawals
●● The costs of doing business are termed:
Answer:
Liabilities
●● True or False - Net Loss is defined as the amount remaining when revenue exceeds expenses.
Answer:
False, that is net profit
●● True or False - Expenses increase owner's equity.
Answer:
False
●● Which account below should NOT have a credit balance?
Guide Detailed A+ Questions and Answers
Verified Solutions Latest Update 2026/2027
Answer:
Asset
●● Which of the following is an example of a liability:
Answer:
Accounts Payable
●● True or False - The expanded accounting equation is: Assets = Liabilities + Owner's Equity
Answer:
False
●● Gross profit minus expenses equals:
Answer:
Net Profit
●● Which of the following is not factored into computing Owner's Equity in the expanded
Accounting equation:
Answer:
Owner's Equity = [Capital In - Withdrawals] + [Revenue - Expenses]
●● Revenue after deducting costs of goods sold is called:
Answer:
Gross Profit
●● John Smith gives his business $10,000.00 from his own personal funds. Which of the
following accounts does this transaction affect?
Answer:
, Capital
●● True or False - The basic accounting equation is: Assets = Liabilities + Owner's Equity
Answer:
True
●● A firm has $15,000.00 in liabilities and $22,500.00 in assets. In order to compute the Basic
Accounting Equation, what must Owner's Equity be?
Answer:
$7,500
●● Another name for ownership is:
Answer:
Equity
●● John Smith takes $5,000.00 back from his business to repay himself some of the money he
loaned to his business. Which account would be affected:
Answer:
Withdrawals
●● The costs of doing business are termed:
Answer:
Liabilities
●● True or False - Net Loss is defined as the amount remaining when revenue exceeds expenses.
Answer:
False, that is net profit
●● True or False - Expenses increase owner's equity.
Answer:
False
●● Which account below should NOT have a credit balance?
