AAMI ACCOUNTING PRACTICE TEST QUESTIONS WITH SOLUTIONS
A+ 2025/2026
✔✔The cost added to the value of an assets acquisition cost and thus depreciated is
referred to as - ✔✔Capitalized Cost
✔✔Accumulated depreciation appears on which financial statement - ✔✔Trial balance
or
Balance sheet
✔✔What rate do we assume when we use the declining balance method of depreciation
- ✔✔.40
✔✔What are the 4 methods of calculating depreciation - ✔✔Straight line method
Units of Output
Sum of years digits
Double declining method
✔✔Acquisition cost-Accumulated depreciation - ✔✔Book value
✔✔What are the accelerated methods of depreciation - ✔✔Double declining method
Sum of years digits
✔✔Which depreciation method establishes the same depreciation expense per year -
✔✔Straight line method
✔✔Which depreciation method establishes the same depreciation expense per use -
✔✔Units of output method
✔✔Acquisition cost-Salvage value/Useful life in years - ✔✔Annual depreciation
expense
✔✔Acquisition cost-Salvage value/Units of output - ✔✔Depreciation expense per use
✔✔Journal Entry: purchase of goods to sell on account w/ a freight charge - ✔✔Debit:
merchandise purchases
freight in
Credit:
Cash
✔✔A company that purchases finished goods for resale - ✔✔Merchandising company
, ✔✔Journal Entry: Payment on account and take advantage of early discount - ✔✔Debit:
Accounts Payable
Credit:
Cash
Purchase discount
✔✔Journal Entry: Company purchases goods to sell on account - ✔✔Debit:
Merchandise Purchases
Credit:
Accounts Payable
✔✔Journal Entry: Returned purchased goods to sell that were originally bought for cash
- ✔✔Debit:
Cash
Purchase discount
Credit:
purchase returns and allowances
✔✔A form used to record details of a sale and a bill to the customer - ✔✔Invoice
✔✔What account does a company debit when it buys goods that it plans to sell to its
customers - ✔✔Merchandise purchases
✔✔Journal Entry: Company bought goods to sell for cash - ✔✔Debit:
Merchandise purchases
Credit:
Cash
✔✔a 2% discount if invoice is paid within 10 days, net due in 30 days - ✔✔2/10, n/30
✔✔What concept is key to small business operations - ✔✔Cash Flow
A+ 2025/2026
✔✔The cost added to the value of an assets acquisition cost and thus depreciated is
referred to as - ✔✔Capitalized Cost
✔✔Accumulated depreciation appears on which financial statement - ✔✔Trial balance
or
Balance sheet
✔✔What rate do we assume when we use the declining balance method of depreciation
- ✔✔.40
✔✔What are the 4 methods of calculating depreciation - ✔✔Straight line method
Units of Output
Sum of years digits
Double declining method
✔✔Acquisition cost-Accumulated depreciation - ✔✔Book value
✔✔What are the accelerated methods of depreciation - ✔✔Double declining method
Sum of years digits
✔✔Which depreciation method establishes the same depreciation expense per year -
✔✔Straight line method
✔✔Which depreciation method establishes the same depreciation expense per use -
✔✔Units of output method
✔✔Acquisition cost-Salvage value/Useful life in years - ✔✔Annual depreciation
expense
✔✔Acquisition cost-Salvage value/Units of output - ✔✔Depreciation expense per use
✔✔Journal Entry: purchase of goods to sell on account w/ a freight charge - ✔✔Debit:
merchandise purchases
freight in
Credit:
Cash
✔✔A company that purchases finished goods for resale - ✔✔Merchandising company
, ✔✔Journal Entry: Payment on account and take advantage of early discount - ✔✔Debit:
Accounts Payable
Credit:
Cash
Purchase discount
✔✔Journal Entry: Company purchases goods to sell on account - ✔✔Debit:
Merchandise Purchases
Credit:
Accounts Payable
✔✔Journal Entry: Returned purchased goods to sell that were originally bought for cash
- ✔✔Debit:
Cash
Purchase discount
Credit:
purchase returns and allowances
✔✔A form used to record details of a sale and a bill to the customer - ✔✔Invoice
✔✔What account does a company debit when it buys goods that it plans to sell to its
customers - ✔✔Merchandise purchases
✔✔Journal Entry: Company bought goods to sell for cash - ✔✔Debit:
Merchandise purchases
Credit:
Cash
✔✔a 2% discount if invoice is paid within 10 days, net due in 30 days - ✔✔2/10, n/30
✔✔What concept is key to small business operations - ✔✔Cash Flow
