Intuit Bookkeeping Professional Certificate Questions and Answers
1. What are the 5 Account Types? ANSWER - Assets
- Liabilities
- Equity
- Revenue
- Expenses
2. What is the accounting formula? ANSWER Assets = Liabilities + Equity
3. What does DEA/LER stand for?
ANSWER - Debit Expenses and Assets
- Credit
Liabilities
Equity
Revenue
4. What are the 5 steps of the Accounting-Cycle? ANSWER 1. Identify transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
5. What are the 4 Types of financial statements? ANSWER - The income statement (aka P&L
statement ANSWER Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
6. What are the 4 types of accounting adjustments? ANSWER - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
7. What tasks would a bookkeeper do? ANSWER - Handle bank feeds and reconciles bank accounts,
managing accounts receivable/payable, and record financial transactions
8. Mary Smith is the owner and operator of Smith Construction. At the end of
the company's accounting period, December 31, 2020, Smith Construction has
assets totaling $760,000 and liabilities totaling $240,000.
, Intuit Bookkeeping Professional Certificate Questions and Answers
Use the accounting equation to calculate what Mary's Owner Equity would be
as of December 31, 2020. ANSWER - $520,000
9. Mike Anderson is the owner and operator of Anderson Consulting. At the
end of 2019, the company's assets totaled $500,000 and its liabilities totaled
$175,000. Assuming that over the 2020 fiscal year, assets increased by $120,000
and liabilities increased by $72,000, use the accounting equation to determine
what Mike's Owner's equity will be as of December 31, 2020? ANSWER -
$373,000
10. Maria Garcia owns a software consulting firm. At the beginning of 2019, her
firm had assets of $800,000 and liabilities of $185,000. Assuming that assets
decreased by $52,000 and liabilities increased by $24,000 during 2020, use the
accounting equation to calculate equity at the end of 2020. ANSWER -
$539,000
11. The accounting equation can be defined as ANSWER ANSWER - Assets = Liability
Equity
12. What the company owns or controls and expects to gain value from is
defined as ANSWER ANSWER - An Asset
13. What the company owes to others is defined as ANSWER ANSWER -
Liabilities
14. The owner's stake in the company is defined as ANSWER ANSWER - Equity
15. A way of bookkeeping that tracks which accounts increase and which de-
crease for a given transaction is known as ANSWER ANSWER - Double-entry
Accounting
16. Which of the following best defines a credit as it's used in double-entry
accounting? ANSWER - A decrease in assets/expenses and an increase in liabilities/owner's equity
and revenue.
17. Which of the following best defines a debit as it's used in double-entry
accounting? ANSWER - An increase in assets/expenses and a decrease in liabilities/owner's equity
and revenue.
18. You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal entry,
which account would you debit? ANSWER - Inventory account
, Intuit Bookkeeping Professional Certificate Questions and Answers
19. An owner invests $1000 in the company. This transaction impacted the
checking account and the owner's equity account. In your journal entry, which
account do you credit? ANSWER - Owner's equity account
20. A sales manager purchases office supplies with the company credit card. This
transaction impacts the accounts payable and the office supplies accounts. In
your journal entry, which account do you credit? ANSWER - Accounts payable
1. What are the 5 Account Types? ANSWER - Assets
- Liabilities
- Equity
- Revenue
- Expenses
2. What is the accounting formula? ANSWER Assets = Liabilities + Equity
3. What does DEA/LER stand for?
ANSWER - Debit Expenses and Assets
- Credit
Liabilities
Equity
Revenue
4. What are the 5 steps of the Accounting-Cycle? ANSWER 1. Identify transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
5. What are the 4 Types of financial statements? ANSWER - The income statement (aka P&L
statement ANSWER Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
6. What are the 4 types of accounting adjustments? ANSWER - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
7. What tasks would a bookkeeper do? ANSWER - Handle bank feeds and reconciles bank accounts,
managing accounts receivable/payable, and record financial transactions
8. Mary Smith is the owner and operator of Smith Construction. At the end of
the company's accounting period, December 31, 2020, Smith Construction has
assets totaling $760,000 and liabilities totaling $240,000.
, Intuit Bookkeeping Professional Certificate Questions and Answers
Use the accounting equation to calculate what Mary's Owner Equity would be
as of December 31, 2020. ANSWER - $520,000
9. Mike Anderson is the owner and operator of Anderson Consulting. At the
end of 2019, the company's assets totaled $500,000 and its liabilities totaled
$175,000. Assuming that over the 2020 fiscal year, assets increased by $120,000
and liabilities increased by $72,000, use the accounting equation to determine
what Mike's Owner's equity will be as of December 31, 2020? ANSWER -
$373,000
10. Maria Garcia owns a software consulting firm. At the beginning of 2019, her
firm had assets of $800,000 and liabilities of $185,000. Assuming that assets
decreased by $52,000 and liabilities increased by $24,000 during 2020, use the
accounting equation to calculate equity at the end of 2020. ANSWER -
$539,000
11. The accounting equation can be defined as ANSWER ANSWER - Assets = Liability
Equity
12. What the company owns or controls and expects to gain value from is
defined as ANSWER ANSWER - An Asset
13. What the company owes to others is defined as ANSWER ANSWER -
Liabilities
14. The owner's stake in the company is defined as ANSWER ANSWER - Equity
15. A way of bookkeeping that tracks which accounts increase and which de-
crease for a given transaction is known as ANSWER ANSWER - Double-entry
Accounting
16. Which of the following best defines a credit as it's used in double-entry
accounting? ANSWER - A decrease in assets/expenses and an increase in liabilities/owner's equity
and revenue.
17. Which of the following best defines a debit as it's used in double-entry
accounting? ANSWER - An increase in assets/expenses and a decrease in liabilities/owner's equity
and revenue.
18. You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal entry,
which account would you debit? ANSWER - Inventory account
, Intuit Bookkeeping Professional Certificate Questions and Answers
19. An owner invests $1000 in the company. This transaction impacted the
checking account and the owner's equity account. In your journal entry, which
account do you credit? ANSWER - Owner's equity account
20. A sales manager purchases office supplies with the company credit card. This
transaction impacts the accounts payable and the office supplies accounts. In
your journal entry, which account do you credit? ANSWER - Accounts payable
