AAMI ACCOUNTING ONE FINAL REVIEW
The following proves the ledger: - ANSWERS-The trial balance
The book of accounts is the: - ANSWERS-Ledger
The book of transactions is the: - ANSWERS-Journal
Revenue - Expenses = - ANSWERS-income
A 12 month period not ending on December 31st is a: - ANSWERS-Fiscal Year
Things of value that a business owns are: - ANSWERS-Assets
What is included in the Trial Balance? - ANSWERS-Every account
Revenue - Expenses = - ANSWERS-Net income
The entry to close out revenue is - ANSWERS-Debit revenue
The entry to close out expenses is: - ANSWERS-Credit expenses
Which of the following can be an entry to close out Income Summary? - ANSWERS-Debit
income summary
There is a profit when the Income Summary has a credit balance after Revenue and
Expenses have been closed out. - ANSWERS-true
, There is a loss when the Income Summary has a debit balance after Revenue and Expenses
have been closed out - ANSWERS-True
the Income Statement is an informal financial statement. - ANSWERS-False
The Trial Balance is a formal financial statement. - ANSWERS-False
The capital account gets closed out to - ANSWERS-Account does not closed out
180/360= - ANSWERS-1/2
90/360= - ANSWERS-1/4
simple interest - ANSWERS-principal X interest rate X number of days of borrowing / 360
drawing account is a - ANSWERS-temporary account / also referred to as owner's
withdrawals
prepaid expenses are - ANSWERS-assets ( items like rent, insurance or utilities)
Accounting is - ANSWERS-Language of business/ to communicate financial information
accounting is base on - ANSWERS-double entry
assets are - ANSWERS-things of value that a busniess own or property
labilities are - ANSWERS-debits that a business owes
The following proves the ledger: - ANSWERS-The trial balance
The book of accounts is the: - ANSWERS-Ledger
The book of transactions is the: - ANSWERS-Journal
Revenue - Expenses = - ANSWERS-income
A 12 month period not ending on December 31st is a: - ANSWERS-Fiscal Year
Things of value that a business owns are: - ANSWERS-Assets
What is included in the Trial Balance? - ANSWERS-Every account
Revenue - Expenses = - ANSWERS-Net income
The entry to close out revenue is - ANSWERS-Debit revenue
The entry to close out expenses is: - ANSWERS-Credit expenses
Which of the following can be an entry to close out Income Summary? - ANSWERS-Debit
income summary
There is a profit when the Income Summary has a credit balance after Revenue and
Expenses have been closed out. - ANSWERS-true
, There is a loss when the Income Summary has a debit balance after Revenue and Expenses
have been closed out - ANSWERS-True
the Income Statement is an informal financial statement. - ANSWERS-False
The Trial Balance is a formal financial statement. - ANSWERS-False
The capital account gets closed out to - ANSWERS-Account does not closed out
180/360= - ANSWERS-1/2
90/360= - ANSWERS-1/4
simple interest - ANSWERS-principal X interest rate X number of days of borrowing / 360
drawing account is a - ANSWERS-temporary account / also referred to as owner's
withdrawals
prepaid expenses are - ANSWERS-assets ( items like rent, insurance or utilities)
Accounting is - ANSWERS-Language of business/ to communicate financial information
accounting is base on - ANSWERS-double entry
assets are - ANSWERS-things of value that a busniess own or property
labilities are - ANSWERS-debits that a business owes
