INTUIT BOOKKEEPING EXAM / COMPREHENSIVE
STUDY GUIDE QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES
2026/2027 Q&A | INSTANT DOWNLOAD PDF
Core Domains
Accounting Basics and the Accounting Equation
Double-Entry Accounting and Debits/Credits
The Accounting Cycle and Journal Entries
Financial Statements and Reporting
Accounting Principles and Assumptions
Bookkeeping Ethics and Professional Standards
Assets, Liabilities, Equity, Revenue, and Expenses
Bank Reconciliation and Cash Management
Payroll Fundamentals and Adjusting Entries
QuickBooks Online Fundamentals
Introduction
The Intuit Bookkeeping Exam assesses foundational bookkeeping and accounting knowledge essential for
careers in finance, accounting, and business. This examination evaluates understanding of the
accounting equation, double-entry bookkeeping, journal entries, financial statements, accounting
principles, and ethical standards. Questions are structured in multiple-choice and scenario-based formats
emphasizing real-world application, critical thinking, and decision-making. Candidates must demonstrate
competency in recording transactions, preparing financial statements, reconciling accounts, and applying
Generally Accepted Accounting Principles (GAAP) to support accurate financial recordkeeping and
business decision-making .
SECTION ONE: QUESTIONS 1–100
Question 1
What is the fundamental accounting equation?
A. Assets = Liabilities – Owner's Equity
B. Assets + Liabilities = Owner's Equity
C. Assets = Liabilities + Owner's Equity
D. Assets + Owner's Equity = Liabilities
C. Assets = Liabilities + Owner's Equity
, RATIONALE: The accounting equation is the foundation of double-entry bookkeeping and must
remain in balance after every transaction. Assets are resources owned by the business, liabilities are
obligations owed to others, and owner's equity represents the owner's stake in the business .
Question 2
What does DEALER stand for?
A. Debits Expenses and Assets; Liabilities, Equity, Revenue
B. Debits Equity and Assets; Liabilities, Expenses, Revenue
C. Debits Expenses and Liabilities; Assets, Equity, Revenue
D. Debits Assets and Revenue; Liabilities, Equity, Expenses
A. Debits Expenses and Assets; Liabilities, Equity, Revenue
RATIONALE: DEALER is a mnemonic for remembering which accounts increase with debits and
credits: Debit Expenses and Assets; Credit Liabilities, Equity, and Revenue .
Question 3
What are the five account types in accounting?
A. Income, Expenses, Cash, Inventory, Payroll
B. Assets, Liabilities, Equity, Revenue, Expenses
C. Debits, Credits, Journals, Ledgers, Trial Balances
D. Current, Long-term, Fixed, Intangible, Liquid
B. Assets, Liabilities, Equity, Revenue, Expenses
RATIONALE: The five account types are Assets, Liabilities, Equity, Revenue, and Expenses. These
form the foundation of double-entry accounting and appear on the financial statements .
Question 4
Which financial statement reports a company's assets, liabilities, and equity at a specific point in time?
A. The Income Statement
B. The Balance Sheet
C. The Statement of Equity
D. The Statement of Cash Flow
B. The Balance Sheet
RATIONALE: The balance sheet is a snapshot of the business's financial position at a specific point in
time, showing assets, liabilities, and equity. It displays what the business owns and what the business
owes as of a single day .
Question 5
Which financial statement reports a company's revenues and expenses over a period of time?
, A. The Balance Sheet
B. The Income Statement
C. The Statement of Equity
D. The Statement of Cash Flow
B. The Income Statement
RATIONALE: The income statement (also called the Profit and Loss statement) reports all revenue
and expenses for a specific period, showing the company's financial performance over time .
Question 6
Which financial statement reports the sources and uses of cash by a business?
A. The Income Statement
B. The Balance Sheet
C. The Statement of Equity
D. The Statement of Cash Flow
D. The Statement of Cash Flow
RATIONALE: The Statement of Cash Flow provides aggregate data regarding all cash inflows a
company receives from its ongoing operations and external investments. It reports the sources and uses
of cash by a business .
Question 7
Which financial statement reports changes in company equity from the opening balance to the end of
the period?
A. The Income Statement
B. The Balance Sheet
C. The Statement of Equity
D. The Statement of Cash Flow
C. The Statement of Equity
RATIONALE: The Statement of Equity reports the changes in company equity, from the opening
balance to the end of the period balance. It shows the owner's change in capital over time .
Question 8
What are the six steps of the Accounting Cycle in order?
A. Analyze transactions, record, unadjusted trial balance, adjusting entries, adjusted trial balance,
financial statements
B. Record, analyze, financial statements, adjusting entries, trial balance, close books
C. Identify transactions, run reports, adjusting entries, close books, trial balance, record
D. Analyze transactions, financial statements, adjusting entries, trial balance, record, close books
STUDY GUIDE QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES
2026/2027 Q&A | INSTANT DOWNLOAD PDF
Core Domains
Accounting Basics and the Accounting Equation
Double-Entry Accounting and Debits/Credits
The Accounting Cycle and Journal Entries
Financial Statements and Reporting
Accounting Principles and Assumptions
Bookkeeping Ethics and Professional Standards
Assets, Liabilities, Equity, Revenue, and Expenses
Bank Reconciliation and Cash Management
Payroll Fundamentals and Adjusting Entries
QuickBooks Online Fundamentals
Introduction
The Intuit Bookkeeping Exam assesses foundational bookkeeping and accounting knowledge essential for
careers in finance, accounting, and business. This examination evaluates understanding of the
accounting equation, double-entry bookkeeping, journal entries, financial statements, accounting
principles, and ethical standards. Questions are structured in multiple-choice and scenario-based formats
emphasizing real-world application, critical thinking, and decision-making. Candidates must demonstrate
competency in recording transactions, preparing financial statements, reconciling accounts, and applying
Generally Accepted Accounting Principles (GAAP) to support accurate financial recordkeeping and
business decision-making .
SECTION ONE: QUESTIONS 1–100
Question 1
What is the fundamental accounting equation?
A. Assets = Liabilities – Owner's Equity
B. Assets + Liabilities = Owner's Equity
C. Assets = Liabilities + Owner's Equity
D. Assets + Owner's Equity = Liabilities
C. Assets = Liabilities + Owner's Equity
, RATIONALE: The accounting equation is the foundation of double-entry bookkeeping and must
remain in balance after every transaction. Assets are resources owned by the business, liabilities are
obligations owed to others, and owner's equity represents the owner's stake in the business .
Question 2
What does DEALER stand for?
A. Debits Expenses and Assets; Liabilities, Equity, Revenue
B. Debits Equity and Assets; Liabilities, Expenses, Revenue
C. Debits Expenses and Liabilities; Assets, Equity, Revenue
D. Debits Assets and Revenue; Liabilities, Equity, Expenses
A. Debits Expenses and Assets; Liabilities, Equity, Revenue
RATIONALE: DEALER is a mnemonic for remembering which accounts increase with debits and
credits: Debit Expenses and Assets; Credit Liabilities, Equity, and Revenue .
Question 3
What are the five account types in accounting?
A. Income, Expenses, Cash, Inventory, Payroll
B. Assets, Liabilities, Equity, Revenue, Expenses
C. Debits, Credits, Journals, Ledgers, Trial Balances
D. Current, Long-term, Fixed, Intangible, Liquid
B. Assets, Liabilities, Equity, Revenue, Expenses
RATIONALE: The five account types are Assets, Liabilities, Equity, Revenue, and Expenses. These
form the foundation of double-entry accounting and appear on the financial statements .
Question 4
Which financial statement reports a company's assets, liabilities, and equity at a specific point in time?
A. The Income Statement
B. The Balance Sheet
C. The Statement of Equity
D. The Statement of Cash Flow
B. The Balance Sheet
RATIONALE: The balance sheet is a snapshot of the business's financial position at a specific point in
time, showing assets, liabilities, and equity. It displays what the business owns and what the business
owes as of a single day .
Question 5
Which financial statement reports a company's revenues and expenses over a period of time?
, A. The Balance Sheet
B. The Income Statement
C. The Statement of Equity
D. The Statement of Cash Flow
B. The Income Statement
RATIONALE: The income statement (also called the Profit and Loss statement) reports all revenue
and expenses for a specific period, showing the company's financial performance over time .
Question 6
Which financial statement reports the sources and uses of cash by a business?
A. The Income Statement
B. The Balance Sheet
C. The Statement of Equity
D. The Statement of Cash Flow
D. The Statement of Cash Flow
RATIONALE: The Statement of Cash Flow provides aggregate data regarding all cash inflows a
company receives from its ongoing operations and external investments. It reports the sources and uses
of cash by a business .
Question 7
Which financial statement reports changes in company equity from the opening balance to the end of
the period?
A. The Income Statement
B. The Balance Sheet
C. The Statement of Equity
D. The Statement of Cash Flow
C. The Statement of Equity
RATIONALE: The Statement of Equity reports the changes in company equity, from the opening
balance to the end of the period balance. It shows the owner's change in capital over time .
Question 8
What are the six steps of the Accounting Cycle in order?
A. Analyze transactions, record, unadjusted trial balance, adjusting entries, adjusted trial balance,
financial statements
B. Record, analyze, financial statements, adjusting entries, trial balance, close books
C. Identify transactions, run reports, adjusting entries, close books, trial balance, record
D. Analyze transactions, financial statements, adjusting entries, trial balance, record, close books
