AAMI ACCOUNTING 1 UPDATED EXAMS SCRIPT
QUESTIONS AND ANSWERS SURE A+
✔✔Beginning inventory + Net purchases = - ✔✔Cost of goods available for sale
✔✔Beginning inventory + Net purchases - Ending inventory = - ✔✔Cost of goods sold
✔✔FICA stands for - ✔✔Federal insurance contributions Act
✔✔Income before any payroll deductions is referred to as - ✔✔Gross pay
✔✔The wage and tax statement is - ✔✔W2
✔✔The employee's withholding certificate is referred to as the - ✔✔W4
✔✔What account is debited when an employer pays his or her employees. - ✔✔Payroll
expense
✔✔Social security is financed by - ✔✔FICA
✔✔The periodic allocation of costs of assets is referred to as - ✔✔Depreciation
✔✔The periodic allocation of costs of natural resources is referred to as - ✔✔Depletion
✔✔The periodic allocation of costs of intangible assets is referred to as -
✔✔Amortization
✔✔The cost added to the value of an asset's acquisition cost and thus depreciated is
referred to as - ✔✔Capitalized Cost
, ✔✔The value an asset is expected to have at the end of its useful life is - ✔✔Salvage
Value
✔✔An accounted used to record deductions to the value of a related account is referred
to as a - ✔✔Contra account
✔✔Acquisition cost- accumulated depreciation= - ✔✔Book Value
✔✔Which of the following is not a method of calculating depreciation? - ✔✔Specific
Identification
✔✔Depreciation expense appears in which financial statement? - ✔✔Income statement
✔✔Accumulated depreciation appears on which financial statement? - ✔✔Balance
sheet
✔✔Which depreciation method establishes the same depreciation expense per year? -
✔✔Straight-line
✔✔Which depreciation method establishes the same depreciation expense per use? -
✔✔Units of output
✔✔What rate do we assume when we use the declining balance method of
depreciation? - ✔✔40%
✔✔Acquisition cost- accumulated depreciation= - ✔✔Book Value
✔✔Which of the following in an accelerated method of depreciation? - ✔✔Sum of the
years digits
✔✔A company that purchases finished goods for resale is a - ✔✔Merchandising
company
✔✔A form used to record details of a sale and to bill a customer is a - ✔✔Invoice
✔✔When a company is offered terms "2/10, n/30" , what discount has it been offered if
it pays within 10 days? - ✔✔2%
✔✔What concept is key to small business operations? - ✔✔Cash Flow
✔✔What account does a company debit when it buys goods that it plans to sell to its
customers? - ✔✔Merchandise purchases
QUESTIONS AND ANSWERS SURE A+
✔✔Beginning inventory + Net purchases = - ✔✔Cost of goods available for sale
✔✔Beginning inventory + Net purchases - Ending inventory = - ✔✔Cost of goods sold
✔✔FICA stands for - ✔✔Federal insurance contributions Act
✔✔Income before any payroll deductions is referred to as - ✔✔Gross pay
✔✔The wage and tax statement is - ✔✔W2
✔✔The employee's withholding certificate is referred to as the - ✔✔W4
✔✔What account is debited when an employer pays his or her employees. - ✔✔Payroll
expense
✔✔Social security is financed by - ✔✔FICA
✔✔The periodic allocation of costs of assets is referred to as - ✔✔Depreciation
✔✔The periodic allocation of costs of natural resources is referred to as - ✔✔Depletion
✔✔The periodic allocation of costs of intangible assets is referred to as -
✔✔Amortization
✔✔The cost added to the value of an asset's acquisition cost and thus depreciated is
referred to as - ✔✔Capitalized Cost
, ✔✔The value an asset is expected to have at the end of its useful life is - ✔✔Salvage
Value
✔✔An accounted used to record deductions to the value of a related account is referred
to as a - ✔✔Contra account
✔✔Acquisition cost- accumulated depreciation= - ✔✔Book Value
✔✔Which of the following is not a method of calculating depreciation? - ✔✔Specific
Identification
✔✔Depreciation expense appears in which financial statement? - ✔✔Income statement
✔✔Accumulated depreciation appears on which financial statement? - ✔✔Balance
sheet
✔✔Which depreciation method establishes the same depreciation expense per year? -
✔✔Straight-line
✔✔Which depreciation method establishes the same depreciation expense per use? -
✔✔Units of output
✔✔What rate do we assume when we use the declining balance method of
depreciation? - ✔✔40%
✔✔Acquisition cost- accumulated depreciation= - ✔✔Book Value
✔✔Which of the following in an accelerated method of depreciation? - ✔✔Sum of the
years digits
✔✔A company that purchases finished goods for resale is a - ✔✔Merchandising
company
✔✔A form used to record details of a sale and to bill a customer is a - ✔✔Invoice
✔✔When a company is offered terms "2/10, n/30" , what discount has it been offered if
it pays within 10 days? - ✔✔2%
✔✔What concept is key to small business operations? - ✔✔Cash Flow
✔✔What account does a company debit when it buys goods that it plans to sell to its
customers? - ✔✔Merchandise purchases
