Intuit Bookkeeping Professional
Certificate Exam Questions And Answers
2026 Update.
/. What are the 5 Account Types? - Answer-✅- Assets
- Liabilities
- Equity
- Revenue
- Expenses
/.What is the accounting formula? - Answer-✅Assets = Liabilities + Equity
/.What does DEA/LER stand for? - Answer-✅- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
/.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
/.What are the 4 Types of financial statements? - Answer-✅- The income statement
(aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
/.What are the 4 types of accounting adjustments? - Answer-✅- Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
/.What tasks would a bookkeeper do? - Answer-✅- Handle bank feeds and reconciles
bank accounts, managing accounts receivable/payable, and record financial
transactions
, /.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.
Use the accounting equation to calculate what Mary's Owner Equity would be as of
December 31, 2020. - Answer-✅- $520,000
/.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
/.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
/.The accounting equation can be defined as: - Answer-✅- Assets = Liability + Equity
/.What the company owns or controls and expects to gain value from is defined as: -
Answer-✅- An Asset
/.What the company owes to others is defined as: - Answer-✅- Liabilities
/.The owner's stake in the company is defined as: - Answer-✅- Equity
/.A way of bookkeeping that tracks which accounts increase and which decrease for a
given transaction is known as: - Answer-✅- Double-entry Accounting
/.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.
/.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.
/.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
Certificate Exam Questions And Answers
2026 Update.
/. What are the 5 Account Types? - Answer-✅- Assets
- Liabilities
- Equity
- Revenue
- Expenses
/.What is the accounting formula? - Answer-✅Assets = Liabilities + Equity
/.What does DEA/LER stand for? - Answer-✅- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
/.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
/.What are the 4 Types of financial statements? - Answer-✅- The income statement
(aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
/.What are the 4 types of accounting adjustments? - Answer-✅- Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
/.What tasks would a bookkeeper do? - Answer-✅- Handle bank feeds and reconciles
bank accounts, managing accounts receivable/payable, and record financial
transactions
, /.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.
Use the accounting equation to calculate what Mary's Owner Equity would be as of
December 31, 2020. - Answer-✅- $520,000
/.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
/.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
/.The accounting equation can be defined as: - Answer-✅- Assets = Liability + Equity
/.What the company owns or controls and expects to gain value from is defined as: -
Answer-✅- An Asset
/.What the company owes to others is defined as: - Answer-✅- Liabilities
/.The owner's stake in the company is defined as: - Answer-✅- Equity
/.A way of bookkeeping that tracks which accounts increase and which decrease for a
given transaction is known as: - Answer-✅- Double-entry Accounting
/.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.
/.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.
/.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
