AAMI Accounting One Final Review – 2023 Study Guide with Key Concepts, Definitions, and
Exam-Style Q&A
The Accounting Equation is Assets= Liabilities+Owner's Equity.
Expenses have credit balances. False
Assets have debit balances. True
Liabilities have credit balances. True
Owner's Equity has a credit balance. True
Revenue has a debit balance. False
The statement of operations is the: Income statement
The following proves the ledger: The trial balance
The book of accounts is the: Ledger
The book of transactions is the: Journal
Revenue - Expenses = income
A 12 month period not ending on December 31st is a: Fiscal Year
Things of value that a business owns are: Assets
, What is included in the Trial Balance? Every account
Revenue - Expenses = Net income
The entry to close out revenue is Debit revenue
The entry to close out expenses is: Credit expenses
Which of the following can be an entry to close out Income Summary? Debit income
summary
There is a profit when the Income Summary has a credit balance after Revenue and Expenses
have been closed out. true
There is a loss when the Income Summary has a debit balance after Revenue and Expenses
have been closed out True
the Income Statement is an informal financial statement. False
The Trial Balance is a formal financial statement. False
The capital account gets closed out to Account does not closed out
180/360= 1/2
90/360= 1/4
Exam-Style Q&A
The Accounting Equation is Assets= Liabilities+Owner's Equity.
Expenses have credit balances. False
Assets have debit balances. True
Liabilities have credit balances. True
Owner's Equity has a credit balance. True
Revenue has a debit balance. False
The statement of operations is the: Income statement
The following proves the ledger: The trial balance
The book of accounts is the: Ledger
The book of transactions is the: Journal
Revenue - Expenses = income
A 12 month period not ending on December 31st is a: Fiscal Year
Things of value that a business owns are: Assets
, What is included in the Trial Balance? Every account
Revenue - Expenses = Net income
The entry to close out revenue is Debit revenue
The entry to close out expenses is: Credit expenses
Which of the following can be an entry to close out Income Summary? Debit income
summary
There is a profit when the Income Summary has a credit balance after Revenue and Expenses
have been closed out. true
There is a loss when the Income Summary has a debit balance after Revenue and Expenses
have been closed out True
the Income Statement is an informal financial statement. False
The Trial Balance is a formal financial statement. False
The capital account gets closed out to Account does not closed out
180/360= 1/2
90/360= 1/4
