INTUIT BOOKKEEPING EXAM / COMPREHENSIVE STUDY GUIDE – EXPERT STRATEGIES, REVIEW OF KEY QUIZZES, AND PRACTICE QUESTIONS FOR GUARANTEED SUCCESS / NEWEST 2025/2026(REAL DEAL)

INTUIT BOOKKEEPING EXAM / COMPREHENSIVE STUDY GUIDE – EXPERT
STRATEGIES, REVIEW OF KEY QUIZZES, AND PRACTICE QUESTIONS FOR
GUARANTEED SUCCESS / NEWEST 2025/2026(REAL DEAL)


Question 1
Which of the following are considered the four key elements of bookkeeping ethics?
A) Honesty, Objectivity, Confidentiality, and Professionalism
B) Accuracy, Timeliness, Confidentiality, and Profitability
C) Honesty, Transparency, Legality, and Timeliness
D) Objectivity, Professionalism, Profitability, and Accuracy
Correct Answer: A) Honesty, Objectivity, Confidentiality, and Professionalism
Rationale: These four elements form the cornerstone of ethical conduct for bookkeepers and
accounting professionals.

Question 2
The DEALER acronym helps remember the components of the expanded accounting equation.
What does the "A" in DEALER stand for?
A) Accounts
B) Accruals
C) Assets
D) Adjustments
Correct Answer: C) Assets
Rationale: DEALER stands for Dividends + Expenses + Assets = Liabilities + Equity + Revenue.

Question 3
What is the fundamental accounting equation?
A) Assets = Liabilities - Equity
B) Assets = Liabilities + Equity
C) Equity = Assets + Liabilities
D) Liabilities = Equity + Assets
Correct Answer: B) Assets = Liabilities + Equity
Rationale: This equation represents the relationship between a company's resources (assets)
and the claims on those resources by creditors (liabilities) and owners (equity).

,Question 4
Which financial statement shows a company's revenues and expenses over a specific period of
time?
A) The Balance Sheet
B) The Statement of Equity
C) The Income Statement
D) The Statement of Cash Flow
Correct Answer: C) The Income Statement
Rationale: The Income Statement, also known as the Profit and Loss (P&L) statement,
summarizes a company's financial performance over a period.

Question 5
Which financial statement provides a snapshot of a company's assets, liabilities, and equity at a
specific point in time?
A) The Balance Sheet
B) The Statement of Equity
C) The Income Statement
D) The Statement of Cash Flow
Correct Answer: A) The Balance Sheet
Rationale: The Balance Sheet reports on the company's financial position on a single, specific
date.

Question 6
The financial statement that reports the changes in a company's equity from the beginning to
the end of a period is the:
A) Balance Sheet
B) Statement of Equity
C) Income Statement
D) Statement of Cash Flow
Correct Answer: B) Statement of Equity

,Rationale: This statement details the changes in owner's equity, including contributions,
withdrawals, and net income or loss.

Question 7
Which financial statement reports the sources and uses of cash by a business across operating,
investing, and financing activities?
A) The Balance Sheet
B) The Statement of Equity
C) The Income Statement
D) The Statement of Cash Flow
Correct Answer: D) The Statement of Cash Flow
Rationale: This statement provides insights into a company's liquidity and solvency.

Question 8
Which of the following is the first step in the accounting cycle?
A) Post transactions to the ledger.
B) Prepare an unadjusted trial balance.
C) Prepare financial statements.
D) Analyze and record transactions in a journal.
Correct Answer: D) Analyze and record transactions in a journal.
Rationale: The cycle begins with identifying and recording individual business transactions as
they occur.

Question 9
If a customer pays for a service at the time of the sale, the transaction should be recorded as
a(n):
A) Invoice
B) Sales Receipt
C) Receive Payment
D) Bank Deposit

, Correct Answer: B) Sales Receipt
Rationale: A sales receipt is used for transactions where payment is received immediately.

Question 10
If a customer is billed for a service but does not pay at the time of the sale, the transaction
should be recorded as a(n):
A) Invoice
B) Sales Receipt
C) Receive Payment
D) Bank Deposit
Correct Answer: A) Invoice
Rationale: An invoice is created to bill a customer for goods or services, creating an account
receivable.

Question 11
When a customer pays an outstanding invoice, the bookkeeper should record it using which
function?
A) Invoice
B) Sales Receipt
C) Receive Payment
D) Bank Deposit
Correct Answer: C) Receive Payment
Rationale: The "Receive Payment" function is used to apply a customer's payment to their
open invoice(s).

Question 12
Removing transactions from the current period that belong to a future period, such as prepaid
insurance, is known as a(n):
A) Deferral
B) Accrual
C) Missing Transaction