AAMI Accounting 1 Final Review (Bus 311) Questions and Answers

AAMI Accounting 1 Final Review (Bus 311) Questions and Answers Account receivables are: - Correct Answer ️️ -Assets Cash is considered to be: - Correct Answer ️️ -Asset Which of the following is an example of a liability: - Correct Answer ️️ -Accounts Payable True or False - The expanded accounting equation is: Assets = Liabilities + Owner's Equity - Correct Answer ️️ -False Gross profit minus expenses equals: - Correct Answer ️️ -Net Profit Which of the following is not factored into computing Owner's Equity in the expanded Accounting equation: - Correct Answer ️️ -Owner's Equity = [Capital In - Withdrawals] + [Revenue - Expenses] Revenue after deducting costs of goods sold is called: - Correct 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? - Correct Answer ️️ -Capital True or False - The basic accounting equation is: Assets = Liabilities + Owner's Equity - Correct 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? - Correct Answer ️️ -$7,500 Another name for ownership is: - Correct 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: - Correct Answer ️️ - Withdrawals The costs of doing business are termed: - Correct Answer ️️ -Liabilities True or False - Net Loss is defined as the amount remaining when revenue exceeds expenses. - Correct Answer ️️ -False, that is net profit True or False - Expenses increase owner's equity. - Correct Answer ️️ -False Which account below should NOT have a credit balance? - Correct Answer ️️ - Expenses From the following select the group whose accounts should have a Credit balance associated with them: - Correct Answer ️️ -liabilities, revenue and capital True or False - The abbreviation for debit is DT. - Correct Answer ️️ -False The Revenue Account should have a _______ account balance. - Correct Answer ️️ - Credit The term given to recording an entry when one debit and one credit are affected is called: - Correct Answer ️️ -Double entry