AAMI Accounting 1 Exam (Questions & Answers) Passed!!

Assets - Answer-100-199 Liabilities - Answer-200-299 Owner's Equity - Answer-300-399 Revenue - Answer-400-499 Expenses - Answer-500-599 Assets are: - Answer-Cash, Accounts Receivables, Furniture/Office Equipment, Buildings, Inventory, Automobiles, Machinery Liabilities are: - Answer-Accounts Payable, Mortgage Payable, Sales Tax Payable Capitals are: - Answer-Monies invested by owner, Monies withdrawn by owner Revenue are: - Answer-Sales/Income/Fees Expenses are: - Answer-Postage, Advertising, Wages, Overtime, Utilities, Cost of goods purchased for resale Basic Accounting Equation - Answer-Assets = Liabilities + Owners Equity The Expanded Accounting Equation - Answer-Assets = Liabilities + Capital in - Withdrawals + Revenue - Expenses Gross Profit Equation - Answer-Revenue - Cost of Goods sold = Gross Profit Net Profit (Net Loss) Equation - Answer-Gross Profit - Expenses = Net Profit (Net Loss)Increases to Assets and Expenses are: - Answer-Debits Increases to Liabilities, Capital and Revenue are : - Answer-Credits Decreases to Assets and Expenses are: - Answer-Credits Decreases to Liabilities, Capital and Revenue are: - Answer-Debits Assets and Expense accounts should have _____ Balances. - Answer-Debit Balances Liability, Capital and Revenue Accounts should have _____ Balances. - Answer-Credit Balances TRIAL BALANCE - Answer-Simply proves the equality of debits to credits 3 Formal Financial Statements are: - Answer-Income Statement (or profit/loss statement) Statement of Owner's Equity Balance Sheet