Bookkeeping Class by Intuit Exam/58
Questions with Verified Answers
Bookkeepers typically... - -Record financial transactions, reconcile bank
accounts, manage accounts receivable, manage accounts payable, work with
tax preparers and assist with tax compliance, and generate financial
statements.
-As a bookkeeper what would Honesty mean? - -Reporting financial data
accordingly and timley, owning up to and trying ti fix any mistakes, and
being open and transparent with clients about their business.
-As a bookkeeper what would Objectivity mean? - -Not taking any jobs/
clients that could pose conflict of interest, not allowing outside parties to
influence findings, not letting personal bias get in the way of your
performance.
-As a bookkeeper what would Confidentiality mean? - -Not discussing
business details outside of the job and NEVER using inside information for
personal gain.
-As a bookkeeper what would Profesionalism mean? - -Being considerate of
clients needs/ time, avoiding personal/profesional activities that could bring
shame to profession/business, maintaining proper credentials, and keeping
skills through continuing education.
-What is the Accounting Equation - -Assets=Liability+Equity
-What are some examples of a Liability? - -Morgage,(money owed to a
lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it
back)
Payroll or sales tax owed to a government-(most business will owe one or
more types of taxes to federal, state, or local governments)
-What are some examples of an Asset? - -Accounts Receivable-(money
owed to the business by customers)
Investments in other companies-( potentially sell for cash)
-What are some examples of Equity? - -Money invested into the company
by one or more owners
, -Double-Entry Accounting - -A common way to record transactions records
which accounts increase and decrease. Recorded in debit and credit
columns. (Totals HAVE to be balanced)
-What side can debits and credits be found on? - -Debits are on the left
Credits are on the right
-How do you know if something is a Debit or a Credit? - -Ask yourself, What
kind of account are we looking at? and Is the balance increasing or
decreasing?
-What are the 5 account types? - -Assets
Liability
Equity
Revenue
Expenses
-What is the expanded Accounting Equation? - -{Assets=Liabilities+Equity}
+[Revenues-Expences]
{Balance Sheet} [Income statement]
{Assets+Expenses}=[Liabilities+Equity+Revenue]
-How do Debits and Credits work in an ASSETS Account? - -Debits are an
increase and Credits are a decrease
-How do Debits and Credits work in a LIABILITIES Acount? - -Debits are a
decrease and Credits are an increase
-How do Debits and Credits work in an EQUITY Acount? - -Debits are a
decrease and Credits are an increase
-What does the acronym DEALER mean? - -to increase an account you will
Debit and Expense or Asset account but credit a Liability, Equity, or Revenue
account.
-How would you record a $100 cash payment to the tractor store? - -We
would record it as a CREDIT because it's DECREASING an ASSET (in this case
cash)
-How are credits used in double entry - -Decrease in assets/ expenses.
Increase liabilities/ equity
-How are debits used in double entry - -Increase assets/ expenses.
Decrease liabilities/ equity.
Questions with Verified Answers
Bookkeepers typically... - -Record financial transactions, reconcile bank
accounts, manage accounts receivable, manage accounts payable, work with
tax preparers and assist with tax compliance, and generate financial
statements.
-As a bookkeeper what would Honesty mean? - -Reporting financial data
accordingly and timley, owning up to and trying ti fix any mistakes, and
being open and transparent with clients about their business.
-As a bookkeeper what would Objectivity mean? - -Not taking any jobs/
clients that could pose conflict of interest, not allowing outside parties to
influence findings, not letting personal bias get in the way of your
performance.
-As a bookkeeper what would Confidentiality mean? - -Not discussing
business details outside of the job and NEVER using inside information for
personal gain.
-As a bookkeeper what would Profesionalism mean? - -Being considerate of
clients needs/ time, avoiding personal/profesional activities that could bring
shame to profession/business, maintaining proper credentials, and keeping
skills through continuing education.
-What is the Accounting Equation - -Assets=Liability+Equity
-What are some examples of a Liability? - -Morgage,(money owed to a
lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it
back)
Payroll or sales tax owed to a government-(most business will owe one or
more types of taxes to federal, state, or local governments)
-What are some examples of an Asset? - -Accounts Receivable-(money
owed to the business by customers)
Investments in other companies-( potentially sell for cash)
-What are some examples of Equity? - -Money invested into the company
by one or more owners
, -Double-Entry Accounting - -A common way to record transactions records
which accounts increase and decrease. Recorded in debit and credit
columns. (Totals HAVE to be balanced)
-What side can debits and credits be found on? - -Debits are on the left
Credits are on the right
-How do you know if something is a Debit or a Credit? - -Ask yourself, What
kind of account are we looking at? and Is the balance increasing or
decreasing?
-What are the 5 account types? - -Assets
Liability
Equity
Revenue
Expenses
-What is the expanded Accounting Equation? - -{Assets=Liabilities+Equity}
+[Revenues-Expences]
{Balance Sheet} [Income statement]
{Assets+Expenses}=[Liabilities+Equity+Revenue]
-How do Debits and Credits work in an ASSETS Account? - -Debits are an
increase and Credits are a decrease
-How do Debits and Credits work in a LIABILITIES Acount? - -Debits are a
decrease and Credits are an increase
-How do Debits and Credits work in an EQUITY Acount? - -Debits are a
decrease and Credits are an increase
-What does the acronym DEALER mean? - -to increase an account you will
Debit and Expense or Asset account but credit a Liability, Equity, or Revenue
account.
-How would you record a $100 cash payment to the tractor store? - -We
would record it as a CREDIT because it's DECREASING an ASSET (in this case
cash)
-How are credits used in double entry - -Decrease in assets/ expenses.
Increase liabilities/ equity
-How are debits used in double entry - -Increase assets/ expenses.
Decrease liabilities/ equity.
