Intuit Bookkeeping Tracking Assets and Sales Questions and Answers
1. Sales transactionsANSWER Sales transactions generate revenue for a business by selling goods a
services.
2. Inventory (Asset Account)ANSWER Inventory, or stock, is the raw material a business uses in product
or
finished goods ready to sell.
3. Property, Plant, and Equipment (PP&E)ANSWER A business's long-term assets that are
expected to generate economic benefits and contribute to revenue for many years. Investment in PP&E is also
called a capital investment.
4. DepreciationANSWER Spreading out the cost of an item over the expected life of the item
5. Balance SheetANSWER A financial statement that reports assets, liabilities, and owner's equity on a specific
date.
6. Income Statement (P&L)ANSWER Identify how the business is performing
7. Transactions Impacting AssetsANSWER 1. Sales Transaction
2. Depreciation
3. Inventory
8. Forms of AssetsANSWER 1. Cash
2. Equipment
3. Property
4. Marketable securities
5. Retirement plans
6. Savings accounts
7. Mutual funds
9. Current assetsANSWER Current—or short-term—assets include cash and items that will be converted
into cash quickly, typically within a year (12 months).
ExamplesANSWER
1. Inventory
2. Accounts receivable
3. Cash and cash equivalents
4. Prepaid Expenses
5. Investment - Money Market accounts (stocks, balances and bonds)
10. InventoryANSWER raw material a business uses in the production of finished goods as well as the finished goods
, Intuit Bookkeeping Tracking Assets and Sales Questions and Answers
and purchased merchandise held by a business for sale.
11. Accounts receivableANSWER the amount of money that clients owe to a business in exchange for the
goods and services that the business has provided on credit to the client.
, Intuit Bookkeeping Tracking Assets and Sales Questions and Answers
12. Cash and cash equivalentsANSWER include accessible money, funds in bank accounts, and short-
term, high-quality investments that can be easily accessed within 90 days, such as certificates of deposit.
13. Prepaid expensesANSWER payments made in advance, like paying six months of insurance premiums.
They are considered assets since the cost has already been incurred.
14. InvestmentsANSWER Money market account balances, stocks, and bonds are all types of investments. Some
invest- ments may be categorized as noncurrent, but most are current assets. Investments in this category are also
defined as marketable securities.
15. Notes receivable (Liability)ANSWER refer to amounts that are owed to the business that will be p
within 12
months.
16. Fixed assetsANSWER Fixed—or long-term—assets are acquired to benefit the business long-term. They
extend beyond a year.
ExamplesANSWER
1. Property, plant and equipment (PP&E)
2. Intangible Assets
17. Property, Plant & Equipment (PP&E)ANSWER Long-term assets that include vehicles and
equipment used to produce and generate capital gains and revenue
18. Intangible assetsANSWER have no physical manifestation, such as copyrights, patents, and intellectual
property
19. Accounts ClassificationANSWER AssetsANSWER
Checking/Business AccountsANSWER 101
SavingsANSWER 102
PP&EANSWER 103
LiabilitiesANSWER
PurchasesANSWER 220
ExpensesANSWER
Oflce expensesANSWER 602
20. Steps to Tracking AssetsANSWER 1. Chart of Accounts
2. Identify asset type
1. Sales transactionsANSWER Sales transactions generate revenue for a business by selling goods a
services.
2. Inventory (Asset Account)ANSWER Inventory, or stock, is the raw material a business uses in product
or
finished goods ready to sell.
3. Property, Plant, and Equipment (PP&E)ANSWER A business's long-term assets that are
expected to generate economic benefits and contribute to revenue for many years. Investment in PP&E is also
called a capital investment.
4. DepreciationANSWER Spreading out the cost of an item over the expected life of the item
5. Balance SheetANSWER A financial statement that reports assets, liabilities, and owner's equity on a specific
date.
6. Income Statement (P&L)ANSWER Identify how the business is performing
7. Transactions Impacting AssetsANSWER 1. Sales Transaction
2. Depreciation
3. Inventory
8. Forms of AssetsANSWER 1. Cash
2. Equipment
3. Property
4. Marketable securities
5. Retirement plans
6. Savings accounts
7. Mutual funds
9. Current assetsANSWER Current—or short-term—assets include cash and items that will be converted
into cash quickly, typically within a year (12 months).
ExamplesANSWER
1. Inventory
2. Accounts receivable
3. Cash and cash equivalents
4. Prepaid Expenses
5. Investment - Money Market accounts (stocks, balances and bonds)
10. InventoryANSWER raw material a business uses in the production of finished goods as well as the finished goods
, Intuit Bookkeeping Tracking Assets and Sales Questions and Answers
and purchased merchandise held by a business for sale.
11. Accounts receivableANSWER the amount of money that clients owe to a business in exchange for the
goods and services that the business has provided on credit to the client.
, Intuit Bookkeeping Tracking Assets and Sales Questions and Answers
12. Cash and cash equivalentsANSWER include accessible money, funds in bank accounts, and short-
term, high-quality investments that can be easily accessed within 90 days, such as certificates of deposit.
13. Prepaid expensesANSWER payments made in advance, like paying six months of insurance premiums.
They are considered assets since the cost has already been incurred.
14. InvestmentsANSWER Money market account balances, stocks, and bonds are all types of investments. Some
invest- ments may be categorized as noncurrent, but most are current assets. Investments in this category are also
defined as marketable securities.
15. Notes receivable (Liability)ANSWER refer to amounts that are owed to the business that will be p
within 12
months.
16. Fixed assetsANSWER Fixed—or long-term—assets are acquired to benefit the business long-term. They
extend beyond a year.
ExamplesANSWER
1. Property, plant and equipment (PP&E)
2. Intangible Assets
17. Property, Plant & Equipment (PP&E)ANSWER Long-term assets that include vehicles and
equipment used to produce and generate capital gains and revenue
18. Intangible assetsANSWER have no physical manifestation, such as copyrights, patents, and intellectual
property
19. Accounts ClassificationANSWER AssetsANSWER
Checking/Business AccountsANSWER 101
SavingsANSWER 102
PP&EANSWER 103
LiabilitiesANSWER
PurchasesANSWER 220
ExpensesANSWER
Oflce expensesANSWER 602
20. Steps to Tracking AssetsANSWER 1. Chart of Accounts
2. Identify asset type
