INTUIT ACADEMY BOOKKEEPING PROFESSIONAL CERTIFICATE 3 UPDATED ACTUAL
EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
● What are the 5 Account Types?. Answer: - Assets - Liabilities - Equity - Revenue -
Expenses
● What is the accounting formula?. Answer: Assets = Liabilities + Equity + Revenue -
Expenses
● What does DEA/LER stand for?. Answer: - Debit Expenses and Assets - Credit Liabilities
Equity Revenue
● What are the 6 steps of the Accounting-Cycle?. Answer: - Collect and Analyze
Transactions - Record/Post transactions to the ledger - Prepare and unadjusted trial balance -
Prepare adjusting entries at the end of the period - Prepare an adjusted trial balance -
Prepare financial statements
● What are the 4 Types of financial statements?. Answer: - The income statement - The
balance sheet - 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
● 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: - A■n Asset
● What the company owes to others is defined as:. Answer: - L■iabilities
● 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: - D■ouble-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: - I■nventory account
● 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: - O■wner's equity account
● 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: - A■ccounts payable
● The company pays off the credit card bill. This transaction impacts the accounts
payable and the cash accounts. In your journal entry, which account do you credit?.
Answer: - C■ash account
● Debits are always represented on what side of a T-chart?. Answer: - T■he left.
EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
● What are the 5 Account Types?. Answer: - Assets - Liabilities - Equity - Revenue -
Expenses
● What is the accounting formula?. Answer: Assets = Liabilities + Equity + Revenue -
Expenses
● What does DEA/LER stand for?. Answer: - Debit Expenses and Assets - Credit Liabilities
Equity Revenue
● What are the 6 steps of the Accounting-Cycle?. Answer: - Collect and Analyze
Transactions - Record/Post transactions to the ledger - Prepare and unadjusted trial balance -
Prepare adjusting entries at the end of the period - Prepare an adjusted trial balance -
Prepare financial statements
● What are the 4 Types of financial statements?. Answer: - The income statement - The
balance sheet - 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
● 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: - A■n Asset
● What the company owes to others is defined as:. Answer: - L■iabilities
● 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: - D■ouble-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: - I■nventory account
● 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: - O■wner's equity account
● 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: - A■ccounts payable
● The company pays off the credit card bill. This transaction impacts the accounts
payable and the cash accounts. In your journal entry, which account do you credit?.
Answer: - C■ash account
● Debits are always represented on what side of a T-chart?. Answer: - T■he left.
