Intuit Academy Bookkeeping Professional Certificate: Bookkeeping Basics Questions With Verified Answers

Intuit Academy Bookkeeping Professional Certificate: Bookkeeping Basics Questions With Verified Answers The Accounting Principle Correct Answer: You can't mix business and personal assets or expenses. Accounting Equation Correct Answer: Assets = Liabilities + Owner's Equity or Assets - Liabilities = Owner's Equity Steps in the Accounting Cycle Correct Answer: 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 Correct Answer: 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) Correct Answer: 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 Correct Answer: A financial statement that reports assets, liabilities, and owner's equity on a specific date. Statement of Equity Correct Answer: Reports changes in company equity from beginning to period end Cash Flow Statement Correct Answer: Reports the sources and uses of cash by a business Undeposited Funds Correct Answer: a temporary account that holds payments you plan to deposit later Credit Memo Correct Answer: Payment for a cancelled service gets applied to the clients next job Gross Profit Correct Answer: Revenue - cost of goods sold Operating Profit Correct Answer: Gross Profit - Expenses Expanded Accounting Equation Correct Answer: Assets = Liabilities + Equity + Revenue - Expenses - Dividends The Five Account Types Correct Answer: Assets, Liabilities, Equity, Revenue, Expenses Normal balance of the five account types Correct Answer: Assets- Normal Dr balance Expenses- Normal Dr balance Dividends- Normal Dr balance Equity- Normal Cr balance Revenue- Normal Cr balance General Journal Correct Answer: A list of transactions organized chronologically Posting to the Ledger Correct Answer: transfer transactions entered in the journal to the general ledger and categorize transactions by account Accounting Cycle Correct Answer: a collective process of identifying, analyzing, and recording the accounting events of a company Net Income Correct Answer: Operating Profit + Other income - taxes - other expenses