AAMI ACCOUNTING ONE EXAM REVIEW 2026
FULL QUESTIONS AND VERIFIED ANSWERS
GUARANTEED TO PASS
● Accountant - one who is concerned with the design of the system of
records, the preparation of reports based upon the recorded data, and the
interpretation of the reports.
● Account balance - the difference between the total debits and the total
credits in an account.
● Accounting - a language of business employed to communicate
financial information based upon analyzing, recording, classification,
summarization, reporting, and interpretation of financial data.
● Accounting cycle - the process involved in journalizing, posting to the
ledger, taking a trial balance, preparing statements, making adjusting and
closing entries, and preparing a post- closing trial balance.
● Accounting equation - Assets equal Liabilities plus Owner's Equity
,● Accounts payable - an unwritten promise to pay creditors for property,
such as merchandise, supplies, or equipment, purchased on credit, or for
services received on credit.
● Accounts receivable - an unwritten promise by a customer to pay, at a
later date, for goods sold or services rendered.
● Accounts receivable turnover - measures how many times per year
receivables are collected.
Calculation: net credit sales divided by average accounts receivable.
Average accounts receivable*e = (Beginning accounts receivable +
Ending accounts receivable) divided by 2.
● Accrual accounting - recording in each fiscal period applicable
expenses, whether paid or not, and income earned, whether collected or
not.
● Accrued expense - an expense incurred in operating a business during
an accounting period, but not yet paid.
● Accrued income - income actually earned during an accounting period
but which will not be received until a future period.
, ● Activity analysis - measures how efficiently a firm is utilizing its
assets.
● Adjusted trial balance - a trial balance taken after adjusting entries
have been recorded.
● Age of account receivables - measures the average time required to
collect receivables
Calculation: 365 days divided by Accounts Receivable Turnover
● Age of inventory - measures the average time required to sell
inventory.
Calculation: 365 days divided by Inventory Turnover
● Assets - property of monetary value owned by a business.
● Bad debts expense - (uncollectible accounts expense; loss from
uncollectible accounts) — accounts receivable that are uncollectible.
FULL QUESTIONS AND VERIFIED ANSWERS
GUARANTEED TO PASS
● Accountant - one who is concerned with the design of the system of
records, the preparation of reports based upon the recorded data, and the
interpretation of the reports.
● Account balance - the difference between the total debits and the total
credits in an account.
● Accounting - a language of business employed to communicate
financial information based upon analyzing, recording, classification,
summarization, reporting, and interpretation of financial data.
● Accounting cycle - the process involved in journalizing, posting to the
ledger, taking a trial balance, preparing statements, making adjusting and
closing entries, and preparing a post- closing trial balance.
● Accounting equation - Assets equal Liabilities plus Owner's Equity
,● Accounts payable - an unwritten promise to pay creditors for property,
such as merchandise, supplies, or equipment, purchased on credit, or for
services received on credit.
● Accounts receivable - an unwritten promise by a customer to pay, at a
later date, for goods sold or services rendered.
● Accounts receivable turnover - measures how many times per year
receivables are collected.
Calculation: net credit sales divided by average accounts receivable.
Average accounts receivable*e = (Beginning accounts receivable +
Ending accounts receivable) divided by 2.
● Accrual accounting - recording in each fiscal period applicable
expenses, whether paid or not, and income earned, whether collected or
not.
● Accrued expense - an expense incurred in operating a business during
an accounting period, but not yet paid.
● Accrued income - income actually earned during an accounting period
but which will not be received until a future period.
, ● Activity analysis - measures how efficiently a firm is utilizing its
assets.
● Adjusted trial balance - a trial balance taken after adjusting entries
have been recorded.
● Age of account receivables - measures the average time required to
collect receivables
Calculation: 365 days divided by Accounts Receivable Turnover
● Age of inventory - measures the average time required to sell
inventory.
Calculation: 365 days divided by Inventory Turnover
● Assets - property of monetary value owned by a business.
● Bad debts expense - (uncollectible accounts expense; loss from
uncollectible accounts) — accounts receivable that are uncollectible.
