AAMI ACCOUNTING ONE ACTUAL EXAM
PAPER 2026 FULL QUESTIONS AND
CORRECT ANSWERS GRADED A+
●● How do you decrease an asset account? Answer: Credit
●● How do you increase a liability account? Answer: Credit
●● How do you decrease a liability account? Answer: debit
●● How do you increase revenue? Answer: Credit
●● How do you increase expenses? Answer: debit
●● What is the accounting equation? Answer:
Assets=Liabilities+Owner's Equity
●● Cash is a(n): Answer: Asset
●● Revenue is a(n): Answer: Owner's Equity
●● Accounts Receivable is a(n): Answer: Asset
,●● Mortgage Payable is a(n): Answer: Liability
●● Accounts Payable is a(n): Answer: Liability
●● Office Equipment is a(n): Answer: Asset
●● Capital is a(n): Answer: Owner's Equity
●● Automotive Equipment is a(n): Answer: Asset
●● The book of original entry is Answer: The Journal
●● What account would you credit if you did a funeral and received
cash? Answer: Revenue
●● What account would you debit if you did a funeral for cash? Answer:
Cash
●● What account would you credit if you did a funeral and did not
receive the funds from the family but are owed on account? Answer:
Revenue
,●● What account would you debit if you did a funeral and did not
receive the funds from the family but are owed on account? Answer:
Cash
●● What account would you debit if you invested cash in your business?
Answer: Cash
●● What account would you credit if you invested cash in your
business? Answer: Capital
●● Accounting is based on the theory of: Answer: basis and fundamental
ideas, or assumptions, underlying the practice of financial accounting
●● A journal entry involving more than two accounts is referred to as
Answer: A COMPOUND JOURNAL ENTRY
●● Which of the following are considered temporary owner's equity
accounts? Answer: REVENUE AN EXPENSES
●● Cash is an Answer: asset
●● Capital is a Answer: liability account.
●● Accounts Receivable is an Answer: asset.
, ●● Mortgage Payable is an Answer: liabilities
●● Capital is an Answer: owners equity
●● A book of transactions is a: Answer: Journal
●● A book of accounts is a: Answer: Ledger
●● The language of business is (a): Answer: Ledger
●● How you increase an account is the type of balance it has. Answer:
True
●● The following are debit balance accounts Answer: Assets and
expenses
●● The following are credit balance accounts: Answer: Liabilities -
Owner's equity - Revenue
●● Cash has a credit balance Answer: False
●● Mortgage Payable has a credit balance. Answer: False
PAPER 2026 FULL QUESTIONS AND
CORRECT ANSWERS GRADED A+
●● How do you decrease an asset account? Answer: Credit
●● How do you increase a liability account? Answer: Credit
●● How do you decrease a liability account? Answer: debit
●● How do you increase revenue? Answer: Credit
●● How do you increase expenses? Answer: debit
●● What is the accounting equation? Answer:
Assets=Liabilities+Owner's Equity
●● Cash is a(n): Answer: Asset
●● Revenue is a(n): Answer: Owner's Equity
●● Accounts Receivable is a(n): Answer: Asset
,●● Mortgage Payable is a(n): Answer: Liability
●● Accounts Payable is a(n): Answer: Liability
●● Office Equipment is a(n): Answer: Asset
●● Capital is a(n): Answer: Owner's Equity
●● Automotive Equipment is a(n): Answer: Asset
●● The book of original entry is Answer: The Journal
●● What account would you credit if you did a funeral and received
cash? Answer: Revenue
●● What account would you debit if you did a funeral for cash? Answer:
Cash
●● What account would you credit if you did a funeral and did not
receive the funds from the family but are owed on account? Answer:
Revenue
,●● What account would you debit if you did a funeral and did not
receive the funds from the family but are owed on account? Answer:
Cash
●● What account would you debit if you invested cash in your business?
Answer: Cash
●● What account would you credit if you invested cash in your
business? Answer: Capital
●● Accounting is based on the theory of: Answer: basis and fundamental
ideas, or assumptions, underlying the practice of financial accounting
●● A journal entry involving more than two accounts is referred to as
Answer: A COMPOUND JOURNAL ENTRY
●● Which of the following are considered temporary owner's equity
accounts? Answer: REVENUE AN EXPENSES
●● Cash is an Answer: asset
●● Capital is a Answer: liability account.
●● Accounts Receivable is an Answer: asset.
, ●● Mortgage Payable is an Answer: liabilities
●● Capital is an Answer: owners equity
●● A book of transactions is a: Answer: Journal
●● A book of accounts is a: Answer: Ledger
●● The language of business is (a): Answer: Ledger
●● How you increase an account is the type of balance it has. Answer:
True
●● The following are debit balance accounts Answer: Assets and
expenses
●● The following are credit balance accounts: Answer: Liabilities -
Owner's equity - Revenue
●● Cash has a credit balance Answer: False
●● Mortgage Payable has a credit balance. Answer: False
