INTUIT ACADEMY BOOKKEEPING PROFESSIONAL CERTIFICATE 4 UPDATED ACTUAL
EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
● Accounting Equation. Answer: Assets = Liabilities + Equity
● Assets. Answer: Anything owned of value or a resource of value that has potential to be
turned into cash - Buildings, equipment, etc.
● Liabilities. Answer: What's owed to others - Loans, unpaid bills, etc.
● Equity. Answer: Owners stake in the company - How much they've invested or withdrawn
● A balance sheet is.... Answer: The accounting equation displayed as a financial statement
● T/F: A business's assets can never equal more or less than the sum of its liabilities
and equity.. Answer: True
● Revenue and expenses on an income statement summarize financial performance
through calculation of...?. Answer: Revenue MINUS expenses
● Balance sheets determine.... Answer: Net income or net loss for specified time periods
● How are negative values noted?. Answer: In parenthesis, ($6000)
● Debits are.... Answer: An increase in assets or expenses, or a decrease in liabilities, owner
equity or revenue.
● Credits are.... Answer: A decrease in assets or expenses, or an increase in liabilities,
owners equity, or revenue.
● Debits and credits.... Answer: Should be equal on both sides.
● Economic Entity Assumption. Answer: Business is its own separate entity from its
owners, keep business's financial activities completely separate from personal financial
activities.
● Reliability Assumption. Answer: Information you record in clients' financial documents is
verifiable and has proper documentation.
EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
● Accounting Equation. Answer: Assets = Liabilities + Equity
● Assets. Answer: Anything owned of value or a resource of value that has potential to be
turned into cash - Buildings, equipment, etc.
● Liabilities. Answer: What's owed to others - Loans, unpaid bills, etc.
● Equity. Answer: Owners stake in the company - How much they've invested or withdrawn
● A balance sheet is.... Answer: The accounting equation displayed as a financial statement
● T/F: A business's assets can never equal more or less than the sum of its liabilities
and equity.. Answer: True
● Revenue and expenses on an income statement summarize financial performance
through calculation of...?. Answer: Revenue MINUS expenses
● Balance sheets determine.... Answer: Net income or net loss for specified time periods
● How are negative values noted?. Answer: In parenthesis, ($6000)
● Debits are.... Answer: An increase in assets or expenses, or a decrease in liabilities, owner
equity or revenue.
● Credits are.... Answer: A decrease in assets or expenses, or an increase in liabilities,
owners equity, or revenue.
● Debits and credits.... Answer: Should be equal on both sides.
● Economic Entity Assumption. Answer: Business is its own separate entity from its
owners, keep business's financial activities completely separate from personal financial
activities.
● Reliability Assumption. Answer: Information you record in clients' financial documents is
verifiable and has proper documentation.
