Intuit Bookkeeping Exam Questions Complete With Correct Answers

Intuit Bookkeeping Exam Questions Complete With Correct Answers Q.Four Key Elements of Bookkeeping Ethics - ANSWERS-Honesty, Objectivity, Confidentiality and Professionalism Q.What is DEALER - ANSWERS-Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue Q.What's is the accounting Equation? - ANSWERS-Assets = Liabilities + Equity Q.Profit and Loss statement. Shows the company's revenues and expenses during a particular period - ANSWERS-The Income Statement Q.A financial statement that reports a company's assets, liabilities, and equity at a specific point in time - ANSWERS-The Balance Sheet Q.Reports the changes in company equity, from the opening balance to the end of the period balance. - ANSWERS-The Statement of Equity Q.Reports the sources and uses of cash by a business - ANSWERS-The Statement of Cash Flow Q.Accounting Cycle - ANSWERS-1. Analyze and record transactions 2. Post transactions to ledger 3. Prepare an unadjusted trial balance 4. Prepare adjusted entries at the end of the period 5. Prepare adjusted trial balance 6. Prepare financial statements Q.If customers pays at the time of sale you must enter it as a - ANSWERS-Sales Receipt Q.If customers does not pay at the time of sale you must enter it as a - ANSWERS-Invoice Q.Once and customer has paid an invoice it goes to - ANSWERS-Receive payment Q.Receive payment and sales receipt are followed by - ANSWERS-Bank deposit Q.Step 4 of The Accounting Cycle: Preparing adjusted entries includes - ANSWERS-Deferrals, Accruals, Missing Transactions, and Tax Adjustments Q.Removing transactions that belong to a different period - ANSWERS-Deferral Q.Opposite of deferral. Concern future payments or expenses - ANSWERS-Accruals Q.The Business is a separate entity, so the activities of a business must be kept separate from any other financial activities of its business owners - ANSWERS-Economic Entity Assumption Q.Only transactions that can be proven should be recorded in accounting practices. And what this means is that businesses must be able to prove transactions through such things as receipts, billing statements, invoices, and bank statements. - ANSWERS-Reliability Assumption Q.All info that is relative to the business and is important to a lender or investor has to be disclosed in financial statements or in the notes of the statements - ANSWERS-Full Disclosure Principle Q.When choosing between two solutions, the one that will be least likely to overstate assets and income should be selected. - ANSWERS-Conservatism Assumption Q.States that an amount can be ignored if its effect on the financial statements is small and not misleading - ANSWERS-Materiality Principle Q.Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so that the results reported from period to period are comparable - ANSWERS-Consistency Principle Q.One currency is used throughout all accounting activities. In the US the dollar is the currency used in accounting. When this currency is used, inflation is not a consideration in recording finances - ANSWERS-Monetary Unit Assumption Q.Refers to a business that is stable enough to operate and meet its obligation for the future - ANSWERS-Going Concern Assumption Q.Revenue is recognized when payment is received and expenses are recognized when paid out - ANSWERS-Cash-Basis Account Method Q.Revenues are reported when they are earned and expenses are reported when they are incurred - ANSWERS-Accrual Method of Accounting Q.A combo of cash-basis and accrual methods - ANSWERS-Hybrid Accounting