INTUIT BOOKKEEPING EXAM 2024 QUESTIONS AND CORRECT ANSWERS

INTUIT BOOKKEEPING EXAM 2024 QUESTIONS AND CORRECT ANSWERS Four Key Elements of Bookkeeping Ethics ---------- CORRECT ANSWER: Honesty, Objectivity, Confidentiality and Professionalism What is DEALER ---------- CORRECT ANSWER: Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue What's is the accounting Equation? ---------- CORRECT ANSWER: Assets = Liabilities + Equity Profit and Loss statement. Shows the company's revenues and expenses during a particular period ---------- CORRECT ANSWER: The Income Statement A financial statement that reports a company's assets, liabilities, and equity at a specific point in time ---------- CORRECT ANSWER: The Balance Sheet Reports the changes in company equity, from the opening balance to the end of the period balance. ---------- CORRECT ANSWER: The Statement of Equity Reports the sources and uses of cash by a business ---------- CORRECT ANSWER: The Statement of Cash Flow Accounting Cycle ---------- CORRECT ANSWER: 1. Analyze and record transactions 2. Post transactions to ledger 3. Prepare an unadjusted trial balance 4. Prepare adjusted entries at the end of the period 5. Prepare adjust ed trial balance 6. Prepare financial statements If customers pays at the time of sale you must enter it as a ---------- CORRECT ANSWER: Sales Receipt If customers does not pay at the time of sale you must enter it as a ---------- CORRECT ANSWER: Invoice Once and customer has paid an invoice it goes to ---------- CORRECT ANSWER: Receive payment Receive payment and sales receipt are followed by ---------- CORRECT ANSWER: Bank deposit Step 4 of The Accounting Cycle: Preparing adjusted entries includes ---------- CORRECT ANSWER: Deferrals, Accruals, Missing Transactions, and Tax Adjustments Removing transactions that belong to a different period ---------- CORRECT ANSWER: Deferral Opposite of deferral. Concern future payments or expenses ---------- CORRECT ANSWER: Accruals The Business is a separate entity, so the activities of a business must be kept separate from any other financial activities of its business owners ---------- CORRECT ANSWER: Economic Entity Assumption Only transactions that can be proven should be recorded in accounting practices. And what this means is that businesses must be able to prove transactions through such things as receipts, billing statements, invoices , and bank statements. ---------- CORRECT ANSWER: Reliability Assumption All info that is relative to the business and is important to a lender or investor has to be disclosed in financial statements or in the notes of the statements ---------- CORRECT ANSWER: Full Disclosure Principle When choosing between two solutions, the one that will be least likely to overstate assets and income should be selected. ---------- CORRECT ANSWER: Conservatism Assumption States that an amount can be ignored if its effect o n the financial statements is small and not misleading ---------- CORRECT ANSWER: Materiality Principle Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so that the results reported from peri od to period are comparable ----------
CORRECT ANSWER: Consistency Principle 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 ---------- CORRECT ANSWER: Monetary Unit Assumption Refers to a business that is stable enough to operate and meet its obligation for the future --------
--CORRECT ANSWER: Going Concern Assumption Revenue is recognized when payment is r eceived and expenses are recognized when paid out ---
------- CORRECT ANSWER: Cash -Basis Account Method