AAMI UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE
●● Assets
Answer: the things that a business owns or posses that are worth a
specific dollar value. Examples include automobiles, cash, accounts
receivables, furniture, and fixtures.
●● Liabilities
Answer: these are debts that are owed to another for goods and/or
services received or used but not yet paid for. Examples, mortgages, car
loans, Accounts Payable.
●● Owners Equity
Answer: how much a business is worth in dollar value.
●● Capital - Withdrawals + Revenue - Expenses
Answer: owners equity is comprised of what?
●● Revenue
Answer: the money that your business takes in from the sale of goods or
services rendered.
,●● Fees
Answer: monies earned by services.
●● Expenses
Answer: the cost associated with doing business.
●● Net Profit
Answer: when revenue exceeds expenses.
●● Net Loss
Answer: when expenses exceed revenue.
●● Gross Profit
Answer: revenue-cost of goods sold = _______________________?
●● Net Profit
Answer: gross profit-expenses = _______________________________?
●● Capital
Answer: the money invested into a business by the owner using his or
her own funds.
, ●● Withdrawals
Answer: money that the owner takes back out of the business, or monies
that the owners pay themselves back from the business.
●● Accounts
Answer: all transactions will involve and influence __________?
●● Debit Credit
Answer: no matter how many or how few accounts are affected there
will always be at least one _________ and one ___________ affected by
the transaction.
●● Assets, Liabilities, Capital/Withdrawals, Revenue, Expenses
Answer: what are the 5 accounts that will be affected by each and every
transaction?
●● Assets = Liabilities + Capital - Withdrawals + Revenue - Expense
Answer: what is the expanded accounting equation?
●● Equity
Answer: how much worth or value something that you posses actually
has. Ownership.
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE
●● Assets
Answer: the things that a business owns or posses that are worth a
specific dollar value. Examples include automobiles, cash, accounts
receivables, furniture, and fixtures.
●● Liabilities
Answer: these are debts that are owed to another for goods and/or
services received or used but not yet paid for. Examples, mortgages, car
loans, Accounts Payable.
●● Owners Equity
Answer: how much a business is worth in dollar value.
●● Capital - Withdrawals + Revenue - Expenses
Answer: owners equity is comprised of what?
●● Revenue
Answer: the money that your business takes in from the sale of goods or
services rendered.
,●● Fees
Answer: monies earned by services.
●● Expenses
Answer: the cost associated with doing business.
●● Net Profit
Answer: when revenue exceeds expenses.
●● Net Loss
Answer: when expenses exceed revenue.
●● Gross Profit
Answer: revenue-cost of goods sold = _______________________?
●● Net Profit
Answer: gross profit-expenses = _______________________________?
●● Capital
Answer: the money invested into a business by the owner using his or
her own funds.
, ●● Withdrawals
Answer: money that the owner takes back out of the business, or monies
that the owners pay themselves back from the business.
●● Accounts
Answer: all transactions will involve and influence __________?
●● Debit Credit
Answer: no matter how many or how few accounts are affected there
will always be at least one _________ and one ___________ affected by
the transaction.
●● Assets, Liabilities, Capital/Withdrawals, Revenue, Expenses
Answer: what are the 5 accounts that will be affected by each and every
transaction?
●● Assets = Liabilities + Capital - Withdrawals + Revenue - Expense
Answer: what is the expanded accounting equation?
●● Equity
Answer: how much worth or value something that you posses actually
has. Ownership.
