HOSMERIT
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE EXAM|| 2024-2025 VERIFIED
SOLUTIONS GRADED A+
What are the 5 Account Types? - ANSWER: - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ANSWER: Assets = Liabilities + Equity
What does DEA/LER stand for? - ANSWER: - DebitExpenses and Assets
- Credit LiabilitiesEquity Revenue
What are the 5 steps of the Accounting-Cycle? - ANSWER: 1. Identifytransactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
What are the 4 Types of financial statements? - ANSWER: - The income statement(aka P&L
statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - ANSWER: - Deferrals
- Accruals
,- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ANSWER: - Handle bank feeds and reconciles bank
accounts, managing accounts receivable/payable, and recordfinancial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of the company's
accounting period, December 31, 2020, Smith Construction has assetstotaling $760,000 and
liabilities totaling $240,000.
Use the accounting equation to calculate what Mary's Owner Equity would be as ofDecember 31,
2020. - ANSWER: - $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the end of 2019, the
company's assets totaled $500,000 and its liabilities totaled $175,000. Assuming that over the
2020 fiscal year, assets increased by $120,000 and liabilities increased by $72,000, use the
accounting equation to determine what Mike's Owner's equity will be as of December 31, 2020? -
ANSWER: - $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019, her firmhad assets of
$800,000 and liabilities of $185,000. Assuming that assets decreasedby $52,000 and liabilities
increased by $24,000 during 2020, use the accounting equation to calculate equity at the end of
2020. - ANSWER: - $539,000
The accounting equation can be defined as: - ANSWER: - Assets = Liability +Equity
What the company owns or controls and expects to gain value from is defined as: -ANSWER: -
An Asset
What the company owes to others is defined as: - ANSWER: - Liabilities
The owner's stake in the company is defined as: - ANSWER: - Equity
, A way of bookkeeping that tracks which accounts increase and which decrease fora given
transaction is known as: - ANSWER: - Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting? - ANSWER:
- A decrease in assets/expenses and an increase inliabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry accounting?- ANSWER: -
An increase in assets/expenses and a decrease in liabilities/owner'sequity and revenue.
You purchased inventory from your vendor and paid cash. The accounts affectedare the inventory
account and the cash account. In your journal entry, which account would you debit? -
ANSWER: - Inventory account
An owner invests $1000 in the company. This transaction impacted the checking account and the
owner's equity account. In your journal entry, which account do you credit? - ANSWER: -
Owner's equity account
A sales manager purchases office supplies with the company credit card. This transaction impacts
the accounts payable and the office supplies accounts. In yourjournal entry, which account do you
credit? - ANSWER: - Accounts payable
The company pays off the credit card bill. This transaction impacts the accounts payable and the
cash accounts. In your journal entry, which account do you credit?
- ANSWER: - Cash account
Debits are always represented on what side of a T-chart? - ANSWER: - The left.
Short-term Investments would be an example of what kind of account? -ANSWER: - An asset
account.
Accounts payable would be an example of what kind of account? - ANSWER: - Aliability
account.
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE EXAM|| 2024-2025 VERIFIED
SOLUTIONS GRADED A+
What are the 5 Account Types? - ANSWER: - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ANSWER: Assets = Liabilities + Equity
What does DEA/LER stand for? - ANSWER: - DebitExpenses and Assets
- Credit LiabilitiesEquity Revenue
What are the 5 steps of the Accounting-Cycle? - ANSWER: 1. Identifytransactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
What are the 4 Types of financial statements? - ANSWER: - The income statement(aka P&L
statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - ANSWER: - Deferrals
- Accruals
,- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ANSWER: - Handle bank feeds and reconciles bank
accounts, managing accounts receivable/payable, and recordfinancial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of the company's
accounting period, December 31, 2020, Smith Construction has assetstotaling $760,000 and
liabilities totaling $240,000.
Use the accounting equation to calculate what Mary's Owner Equity would be as ofDecember 31,
2020. - ANSWER: - $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the end of 2019, the
company's assets totaled $500,000 and its liabilities totaled $175,000. Assuming that over the
2020 fiscal year, assets increased by $120,000 and liabilities increased by $72,000, use the
accounting equation to determine what Mike's Owner's equity will be as of December 31, 2020? -
ANSWER: - $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019, her firmhad assets of
$800,000 and liabilities of $185,000. Assuming that assets decreasedby $52,000 and liabilities
increased by $24,000 during 2020, use the accounting equation to calculate equity at the end of
2020. - ANSWER: - $539,000
The accounting equation can be defined as: - ANSWER: - Assets = Liability +Equity
What the company owns or controls and expects to gain value from is defined as: -ANSWER: -
An Asset
What the company owes to others is defined as: - ANSWER: - Liabilities
The owner's stake in the company is defined as: - ANSWER: - Equity
, A way of bookkeeping that tracks which accounts increase and which decrease fora given
transaction is known as: - ANSWER: - Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting? - ANSWER:
- A decrease in assets/expenses and an increase inliabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry accounting?- ANSWER: -
An increase in assets/expenses and a decrease in liabilities/owner'sequity and revenue.
You purchased inventory from your vendor and paid cash. The accounts affectedare the inventory
account and the cash account. In your journal entry, which account would you debit? -
ANSWER: - Inventory account
An owner invests $1000 in the company. This transaction impacted the checking account and the
owner's equity account. In your journal entry, which account do you credit? - ANSWER: -
Owner's equity account
A sales manager purchases office supplies with the company credit card. This transaction impacts
the accounts payable and the office supplies accounts. In yourjournal entry, which account do you
credit? - ANSWER: - Accounts payable
The company pays off the credit card bill. This transaction impacts the accounts payable and the
cash accounts. In your journal entry, which account do you credit?
- ANSWER: - Cash account
Debits are always represented on what side of a T-chart? - ANSWER: - The left.
Short-term Investments would be an example of what kind of account? -ANSWER: - An asset
account.
Accounts payable would be an example of what kind of account? - ANSWER: - Aliability
account.
