AAMI Accounting 1 (ACCT101) – 98 Exam Questions and Answers on Accounting Equation, Debits & Credits, Financial Statements

This document contains a comprehensive collection of 98 exam-style questions with verified answers designed for the course AAMI Accounting 1 (ACCT101) for the 2026 academic year. The material focuses on fundamental financial accounting concepts including the basic accounting equation (Assets = Liabilities + Owner’s Equity), the expanded accounting equation, classification of assets and liabilities, owner’s capital and withdrawals, revenue and expenses, and the calculation of gross profit, net profit, and net loss. The questions and answers also explain how business transactions affect accounts and how accounting information is recorded and organized. In addition, the document covers the operational mechanics of accounting such as debits and credits, account balances, the structure of asset, liability, capital, revenue, and expense accounts, and the principles of the double-entry accounting system. Students will also review the purpose and preparation of key accounting records including journals, the general ledger, trial balance, and chart of accounts numbering systems. The material further explains the preparation and interpretation of the three major financial statements: the Income Statement (Profit and Loss), the Statement of Owner’s Equity, and the Balance Sheet, which together provide a snapshot of a company’s financial performance and financial position. These topics correspond closely to foundational chapters in standard introductory accounting textbooks such as Financial Accounting by Jerry J. Weygandt, Paul D. Kimmel, and Donald E. Kieso. Because the document is structured in a question-and-answer study format, it is particularly effective as an exam revision resource. Students can use it to reinforce terminology, test conceptual understanding, and review the relationships between accounts and financial statements within the accounting cycle. The clear definitions and direct answers make it suitable for both quick review sessions and deeper conceptual study before quizzes, midterms, or final examinations. This study material may be useful for students enrolled in courses such as: Accounting 1 Principles of Accounting Introduction to Financial Accounting Financial Accounting Fundamentals Business Accounting It may also benefit students pursuing programs including: Accounting Business Administration Finance Economics Entrepreneurship Management and Business Studies Keywords: accounting equation, assets liabilities owners equity, debit and credit rules, financial statements preparation, trial balance accounting, general ledger accounting, journalizing transactions, chart of accounts numbering, income statement accounting, balance sheet fundamentals, statement of owners equity, double entry accounting system, accounting exam questions, accounting practice questions, financial accounting basics