INTUIT ACADEMY BOOKKEEPING EXAM
NEWEST ACTUAL EXAM WITH
COMPLETE
QUESTIONS AND ANSWERS
Allowance Method
An estimate of the future amount of bad debt is charged to a reserve account as
soon as a sale is made. This is more accurate but complex
Accumulated Depreciation Account
A contra-asset account. Has a natural credit balance. Balances decrease with debits.
Balances increase with credits
Cost of Goods Sold (COGS)
An expense account on the income statement. The business's Cost of merchandise
Perpetual
An inventory system. Inventory account continuously updated.
Periodic
An inventory system. Inventory account updated at specified intervals.
,Inventory Cost Flows
FIFO, LIFO, and Average Cost
First-In, First-Out (FIFO)
Method to assign cost to inventory that assumes items are sold in the order
acquired; earliest items purchased are the first sold.
Last in, First out (LIFO)
Method to assign cost to inventory that assumes costs for the most recent items
purchased are sold first and charged to cost of goods sold.
Average Cost
All items in the inventory are priced at their average cost
Closing Inventory
Closing Inventory=Cost of Goods Available- COGS
,COGS equation
BI(Beginning Inventory) + COGP (Cost of Goods Purchased) - EI (Ending
Inventory) = COGS
Fixing Journal Entries
Reverse journal entry or reproduce financial statements
Disclosure
Details the error and corrections you made to the income statement and balance
sheet
Non-Current Assets
PP&E (Plants, Property, and Equipment), Trademarks, and longterm investments
Straight-Line Depreciation
The same amount of depreciation expense is recorded each accounting period,
during an asset's servicing life
Accelerated Depreciation
The asset is used more earlier in its life. Depreciate more in year 2 than year 4
, Depreciation Schedule
Table that shows the depreciation amount over the span of he asset's life
Operating Lease
Asset's ownership transfer is not intended
Conservatism Assumption
When choosing between two solutions, the one that will be least likely to overstate
assets and income should be selected.
Materiality Principle
An amount can be ignored if its effect on the financial statements is small and not
misleading
Consistency Principle
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 Monetary Unit Assumption
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
NEWEST ACTUAL EXAM WITH
COMPLETE
QUESTIONS AND ANSWERS
Allowance Method
An estimate of the future amount of bad debt is charged to a reserve account as
soon as a sale is made. This is more accurate but complex
Accumulated Depreciation Account
A contra-asset account. Has a natural credit balance. Balances decrease with debits.
Balances increase with credits
Cost of Goods Sold (COGS)
An expense account on the income statement. The business's Cost of merchandise
Perpetual
An inventory system. Inventory account continuously updated.
Periodic
An inventory system. Inventory account updated at specified intervals.
,Inventory Cost Flows
FIFO, LIFO, and Average Cost
First-In, First-Out (FIFO)
Method to assign cost to inventory that assumes items are sold in the order
acquired; earliest items purchased are the first sold.
Last in, First out (LIFO)
Method to assign cost to inventory that assumes costs for the most recent items
purchased are sold first and charged to cost of goods sold.
Average Cost
All items in the inventory are priced at their average cost
Closing Inventory
Closing Inventory=Cost of Goods Available- COGS
,COGS equation
BI(Beginning Inventory) + COGP (Cost of Goods Purchased) - EI (Ending
Inventory) = COGS
Fixing Journal Entries
Reverse journal entry or reproduce financial statements
Disclosure
Details the error and corrections you made to the income statement and balance
sheet
Non-Current Assets
PP&E (Plants, Property, and Equipment), Trademarks, and longterm investments
Straight-Line Depreciation
The same amount of depreciation expense is recorded each accounting period,
during an asset's servicing life
Accelerated Depreciation
The asset is used more earlier in its life. Depreciate more in year 2 than year 4
, Depreciation Schedule
Table that shows the depreciation amount over the span of he asset's life
Operating Lease
Asset's ownership transfer is not intended
Conservatism Assumption
When choosing between two solutions, the one that will be least likely to overstate
assets and income should be selected.
Materiality Principle
An amount can be ignored if its effect on the financial statements is small and not
misleading
Consistency Principle
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 Monetary Unit Assumption
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
