INTUIT BOOKKEEPING COMPREHENSIVE
EXAMINATION TEST QUESTIONS AND
SOLUTIONS FULLY VERIFIED
●● 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?
EXAMINATION TEST QUESTIONS AND
SOLUTIONS FULLY VERIFIED
●● 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?
