©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
AAMI ACCOUNTING ONE , AAMI
ACCOUNTING TWO Exam Questions And
Answers Updated 2024/2025
How do you increase an asset account? - answer✔Debit
How do you decrease an asset account? - answer✔Credit
How do you increase a liability account? - answer✔Credit
How do you decrease a liability account? - answer✔debit
How do you increase revenue? - answer✔Credit
How do you increase expenses? - answer✔debit
What is the accounting equation? - answer✔Assets=Liabilities+Owner's Equity
Cash is a(n): - answer✔Asset
Revenue is a(n): - answer✔Owner's Equity
Accounts Receivable is a(n): - answer✔Asset
Mortgage Payable is a(n): - answer✔Liability
Accounts Payable is a(n): - answer✔Liability
Office Equipment is a(n): - answer✔Asset
Capital is a(n): - answer✔Owner's Equity
Automotive Equipment is a(n): - answer✔Asset
The book of original entry is - answer✔The Journal
What account would you credit if you did a funeral and received cash? - answer✔Revenue
1|Page
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ALL RIGHTS RESERVED.
What account would you debit if you did a funeral for cash? - answer✔Cash
What account would you credit if you did a funeral and did not receive the funds from the
family but are owed on account? - answer✔Revenue
What account would you debit if you did a funeral and did not receive the funds from the family
but are owed on account? - answer✔Cash
What account would you debit if you invested cash in your business? - answer✔Cash
What account would you credit if you invested cash in your business? - answer✔Capital
Accounting is based on the theory of: - answer✔basis and fundamental ideas, or assumptions,
underlying the practice of financial accounting
A journal entry involving more than two accounts is referred to as - answer✔A COMPOUND
JOURNAL ENTRY
Which of the following are considered temporary owner's equity accounts? - answer✔REVENUE
AN EXPENSES
Cash is an - answer✔asset
Capital is a - answer✔liability account.
Accounts Receivable is an - answer✔asset.
Mortgage Payable is an - answer✔liabilities
Capital is an - answer✔owners equity
A book of transactions is a: - answer✔Journal
A book of accounts is a: - answer✔Ledger
The language of business is (a): - answer✔Ledger
How you increase an account is the type of balance it has. - answer✔True
The following are debit balance accounts - answer✔Assets and expenses
The following are credit balance accounts: - answer✔Liabilities - Owner's equity - Revenue
Cash has a credit balance - answer✔False
Mortgage Payable has a credit balance. - answer✔False
Accounts Receivable has a debit balance - answer✔False
2|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Capital has a credit balance. - answer✔True
The journal is a - answer✔book.
The ledger is a - answer✔book.
Trial Balance is a - answer✔Statement
Trial Balance is - answer✔informal
Income statement is - answer✔Formal / Temporary account / Revenue and expenses
Statement of owner's equity is - answer✔formal
Balance sheet is a - answer✔permanent account
The Accounting Equation is - answer✔Assets= Liabilities+Owner's Equity.
Expenses have credit balances. - answer✔False
Assets have debit balances. - answer✔True
Liabilities have credit balances. - answer✔True
Owner's Equity has a credit balance. - answer✔True
Revenue has a debit balance. - answer✔False
The statement of operations is the: - answer✔Income statement
The following proves the ledger: - answer✔The trial balance
The book of accounts is the: - answer✔Ledger
The book of transactions is the: - answer✔Journal
Revenue - Expenses = - answer✔income
A 12 month period not ending on December 31st is a: - answer✔Fiscal Year
Things of value that a business owns are: - answer✔Assets
What is included in the Trial Balance? - answer✔Every account
Revenue - Expenses = - answer✔Net income
The entry to close out revenue is - answer✔Debit revenue
The entry to close out expenses is: - answer✔Credit expenses
3|Page
ALL RIGHTS RESERVED.
AAMI ACCOUNTING ONE , AAMI
ACCOUNTING TWO Exam Questions And
Answers Updated 2024/2025
How do you increase an asset account? - answer✔Debit
How do you decrease an asset account? - answer✔Credit
How do you increase a liability account? - answer✔Credit
How do you decrease a liability account? - answer✔debit
How do you increase revenue? - answer✔Credit
How do you increase expenses? - answer✔debit
What is the accounting equation? - answer✔Assets=Liabilities+Owner's Equity
Cash is a(n): - answer✔Asset
Revenue is a(n): - answer✔Owner's Equity
Accounts Receivable is a(n): - answer✔Asset
Mortgage Payable is a(n): - answer✔Liability
Accounts Payable is a(n): - answer✔Liability
Office Equipment is a(n): - answer✔Asset
Capital is a(n): - answer✔Owner's Equity
Automotive Equipment is a(n): - answer✔Asset
The book of original entry is - answer✔The Journal
What account would you credit if you did a funeral and received cash? - answer✔Revenue
1|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
What account would you debit if you did a funeral for cash? - answer✔Cash
What account would you credit if you did a funeral and did not receive the funds from the
family but are owed on account? - answer✔Revenue
What account would you debit if you did a funeral and did not receive the funds from the family
but are owed on account? - answer✔Cash
What account would you debit if you invested cash in your business? - answer✔Cash
What account would you credit if you invested cash in your business? - answer✔Capital
Accounting is based on the theory of: - answer✔basis and fundamental ideas, or assumptions,
underlying the practice of financial accounting
A journal entry involving more than two accounts is referred to as - answer✔A COMPOUND
JOURNAL ENTRY
Which of the following are considered temporary owner's equity accounts? - answer✔REVENUE
AN EXPENSES
Cash is an - answer✔asset
Capital is a - answer✔liability account.
Accounts Receivable is an - answer✔asset.
Mortgage Payable is an - answer✔liabilities
Capital is an - answer✔owners equity
A book of transactions is a: - answer✔Journal
A book of accounts is a: - answer✔Ledger
The language of business is (a): - answer✔Ledger
How you increase an account is the type of balance it has. - answer✔True
The following are debit balance accounts - answer✔Assets and expenses
The following are credit balance accounts: - answer✔Liabilities - Owner's equity - Revenue
Cash has a credit balance - answer✔False
Mortgage Payable has a credit balance. - answer✔False
Accounts Receivable has a debit balance - answer✔False
2|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Capital has a credit balance. - answer✔True
The journal is a - answer✔book.
The ledger is a - answer✔book.
Trial Balance is a - answer✔Statement
Trial Balance is - answer✔informal
Income statement is - answer✔Formal / Temporary account / Revenue and expenses
Statement of owner's equity is - answer✔formal
Balance sheet is a - answer✔permanent account
The Accounting Equation is - answer✔Assets= Liabilities+Owner's Equity.
Expenses have credit balances. - answer✔False
Assets have debit balances. - answer✔True
Liabilities have credit balances. - answer✔True
Owner's Equity has a credit balance. - answer✔True
Revenue has a debit balance. - answer✔False
The statement of operations is the: - answer✔Income statement
The following proves the ledger: - answer✔The trial balance
The book of accounts is the: - answer✔Ledger
The book of transactions is the: - answer✔Journal
Revenue - Expenses = - answer✔income
A 12 month period not ending on December 31st is a: - answer✔Fiscal Year
Things of value that a business owns are: - answer✔Assets
What is included in the Trial Balance? - answer✔Every account
Revenue - Expenses = - answer✔Net income
The entry to close out revenue is - answer✔Debit revenue
The entry to close out expenses is: - answer✔Credit expenses
3|Page
