Intuit Academy Bookkeeping Professional
Certificate: Bookkeeping Basics Exam Study Guide
Questions All Answered
The Accounting Principle - ✔You can't mix business and personal assets or expenses.
Accounting Equation - ✔Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owner's Equity
Expanded Accounting Equation - ✔Assets = Liabilities + Equity + Revenue - Expenses -
Dividends
The Five Account Types - ✔Assets, Liabilities, Equity, Revenue, Expenses
Normal balance of the five account types - ✔Assets- Normal Dr balance
Expenses- Normal Dr balance
Dividends- Normal Dr balance
Equity- Normal Cr balance
Revenue- Normal Cr balance
General Journal - ✔A list of transactions organized chronologically
Posting to the Ledger - ✔transfer transactions entered in the journal to the general
ledger and categorize transactions by account
, Accounting Cycle - ✔a collective process of identifying, analyzing, and recording the
accounting events of a company
Steps in the Accounting Cycle - ✔1. Collect, analyze, and post transactions to the
Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
Accounting adjustments - ✔A business transaction that has not yet been included in
the accounting records.
I.E Deferrals, depreciation, and accruals
income statement (profit and loss statement) - ✔A type of financial statement that
describes a firm's revenues and expenses and indicates whether the firm has earned a
profit or suffered a loss during a given period.
Balance Sheet - ✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
Statement of Equity - ✔Reports changes in company equity from beginning to period
end
Cash Flow Statement - ✔Reports the sources and uses of cash by a business
Certificate: Bookkeeping Basics Exam Study Guide
Questions All Answered
The Accounting Principle - ✔You can't mix business and personal assets or expenses.
Accounting Equation - ✔Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owner's Equity
Expanded Accounting Equation - ✔Assets = Liabilities + Equity + Revenue - Expenses -
Dividends
The Five Account Types - ✔Assets, Liabilities, Equity, Revenue, Expenses
Normal balance of the five account types - ✔Assets- Normal Dr balance
Expenses- Normal Dr balance
Dividends- Normal Dr balance
Equity- Normal Cr balance
Revenue- Normal Cr balance
General Journal - ✔A list of transactions organized chronologically
Posting to the Ledger - ✔transfer transactions entered in the journal to the general
ledger and categorize transactions by account
, Accounting Cycle - ✔a collective process of identifying, analyzing, and recording the
accounting events of a company
Steps in the Accounting Cycle - ✔1. Collect, analyze, and post transactions to the
Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
Accounting adjustments - ✔A business transaction that has not yet been included in
the accounting records.
I.E Deferrals, depreciation, and accruals
income statement (profit and loss statement) - ✔A type of financial statement that
describes a firm's revenues and expenses and indicates whether the firm has earned a
profit or suffered a loss during a given period.
Balance Sheet - ✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
Statement of Equity - ✔Reports changes in company equity from beginning to period
end
Cash Flow Statement - ✔Reports the sources and uses of cash by a business
