Intuit Bookkeeping Professional Certificate
– Real Exam 2025 Edition | 100% Verified
Questions & Answers | Graded A+
Topic 1: Financial Transactions & Double-Entry
Bookkeeping
Question 1
A small retail business sells $500 worth of inventory on credit to a customer. The cost of the
inventory is $300. What is the correct double-entry to record this transaction in QuickBooks
Online?
A. Debit Accounts Receivable $500; Credit Sales Revenue $500.
B. Debit Accounts Receivable $500; Credit Sales Revenue $500; Debit Cost of Goods Sold
$300; Credit Inventory $300.
C. Debit Sales Revenue $500; Credit Accounts Receivable $500.
D. Debit Inventory $300; Credit Accounts Receivable $200.
Answer: B
This records the revenue from the sale and the expense for the cost of goods sold, adhering to
the matching principle in double-entry bookkeeping. In QBO, use the "Create Invoice" for the sale
and ensure inventory tracking is enabled for automatic COGS entry.
Question 2
You are entering a $1,200 cash payment for office supplies in QBO. The supplies were
purchased for immediate use. Which accounts are affected in the double-entry?
A. Debit Supplies Expense $1,200; Credit Cash $1,200.
B. Debit Cash $1,200; Credit Supplies Expense $1,200.
C. Debit Accounts Payable $1,200; Credit Supplies $1,200.
D. Debit Supplies $1,200; Credit Cash $1,200.
Answer: A
,The expense is recognized when incurred (accrual basis), debiting the expense to increase it
and crediting cash to decrease it. QBO's "Expense" transaction form automates this for cash
payments.
Question 3
A consulting firm receives $4,000 in advance for services to be performed next month. How
should this be recorded in double-entry bookkeeping?
A. Debit Cash $4,000; Credit Service Revenue $4,000.
B. Debit Cash $4,000; Credit Unearned Revenue $4,000.
C. Debit Unearned Revenue $4,000; Credit Cash $4,000.
D. Debit Service Revenue $4,000; Credit Cash $4,000.
Answer: B
Unearned revenue is a liability until earned, following the revenue recognition principle. In QBO,
record as a "Receive Payment" or "Sales Receipt" and classify to the unearned liability account.
Question 4
In QBO, you record a $750 depreciation adjustment for equipment. What double-entry reflects
straight-line depreciation?
A. Debit Equipment $750; Credit Accumulated Depreciation $750.
B. Debit Depreciation Expense $750; Credit Accumulated Depreciation $750.
C. Debit Cash $750; Credit Depreciation Expense $750.
D. Debit Accumulated Depreciation $750; Credit Equipment $750.
Answer: B
Depreciation allocates asset cost over time as an expense, contra to the asset. QBO's "Journal
Entry" tool is used for this non-cash transaction.
Question 5
A business buys $2,000 of merchandise on account, terms 2/10 n/30. Ignoring the discount for
now, what is the initial double-entry?
A. Debit Purchases $2,000; Credit Accounts Payable $2,000.
B. Debit Inventory $2,000; Credit Accounts Payable $2,000.
C. Debit Accounts Payable $2,000; Credit Inventory $2,000.
, D. Debit Cash $2,000; Credit Purchases $2,000.
Answer: B
For perpetual inventory systems (common in QBO), debit Inventory to increase assets and
credit the liability. Use the "Bill" form in QBO.
Question 6
You discover a $100 transposition error where $456 was entered as $546. How does this affect
the trial balance under double-entry?
A. Debit side overstated by $90.
B. Credit side understated by $100.
C. Both sides overstated by $90.
D. No net effect, as double-entry balances.
Answer: D
Errors in double-entry that affect both sides equally won't unbalance the trial balance; they
require reconciliation. In QBO, run a Trial Balance report to spot such issues.
Question 7
Recording a $300 owner withdrawal in a sole proprietorship. What is the double-entry?
A. Debit Owner's Draw $300; Credit Cash $300.
B. Debit Cash $300; Credit Owner's Equity $300.
C. Debit Owner's Equity $300; Credit Cash $300.
D. Debit Revenue $300; Credit Owner's Draw $300.
Answer: A
Withdrawals reduce owner's equity via a contra-equity account. In QBO, use "Owner's Draw" as
an equity sub-account in the "Check" or "Expense" form.
Question 8
A service business earns $1,500 in fees, half cash and half credit. Combined double-entry?
A. Debit Cash $750; Debit Accounts Receivable $750; Credit Service Revenue $1,500.
B. Debit Service Revenue $1,500; Credit Cash $750; Credit Accounts Receivable $750.
C. Debit Cash $1,500; Credit Accounts Receivable $750.
– Real Exam 2025 Edition | 100% Verified
Questions & Answers | Graded A+
Topic 1: Financial Transactions & Double-Entry
Bookkeeping
Question 1
A small retail business sells $500 worth of inventory on credit to a customer. The cost of the
inventory is $300. What is the correct double-entry to record this transaction in QuickBooks
Online?
A. Debit Accounts Receivable $500; Credit Sales Revenue $500.
B. Debit Accounts Receivable $500; Credit Sales Revenue $500; Debit Cost of Goods Sold
$300; Credit Inventory $300.
C. Debit Sales Revenue $500; Credit Accounts Receivable $500.
D. Debit Inventory $300; Credit Accounts Receivable $200.
Answer: B
This records the revenue from the sale and the expense for the cost of goods sold, adhering to
the matching principle in double-entry bookkeeping. In QBO, use the "Create Invoice" for the sale
and ensure inventory tracking is enabled for automatic COGS entry.
Question 2
You are entering a $1,200 cash payment for office supplies in QBO. The supplies were
purchased for immediate use. Which accounts are affected in the double-entry?
A. Debit Supplies Expense $1,200; Credit Cash $1,200.
B. Debit Cash $1,200; Credit Supplies Expense $1,200.
C. Debit Accounts Payable $1,200; Credit Supplies $1,200.
D. Debit Supplies $1,200; Credit Cash $1,200.
Answer: A
,The expense is recognized when incurred (accrual basis), debiting the expense to increase it
and crediting cash to decrease it. QBO's "Expense" transaction form automates this for cash
payments.
Question 3
A consulting firm receives $4,000 in advance for services to be performed next month. How
should this be recorded in double-entry bookkeeping?
A. Debit Cash $4,000; Credit Service Revenue $4,000.
B. Debit Cash $4,000; Credit Unearned Revenue $4,000.
C. Debit Unearned Revenue $4,000; Credit Cash $4,000.
D. Debit Service Revenue $4,000; Credit Cash $4,000.
Answer: B
Unearned revenue is a liability until earned, following the revenue recognition principle. In QBO,
record as a "Receive Payment" or "Sales Receipt" and classify to the unearned liability account.
Question 4
In QBO, you record a $750 depreciation adjustment for equipment. What double-entry reflects
straight-line depreciation?
A. Debit Equipment $750; Credit Accumulated Depreciation $750.
B. Debit Depreciation Expense $750; Credit Accumulated Depreciation $750.
C. Debit Cash $750; Credit Depreciation Expense $750.
D. Debit Accumulated Depreciation $750; Credit Equipment $750.
Answer: B
Depreciation allocates asset cost over time as an expense, contra to the asset. QBO's "Journal
Entry" tool is used for this non-cash transaction.
Question 5
A business buys $2,000 of merchandise on account, terms 2/10 n/30. Ignoring the discount for
now, what is the initial double-entry?
A. Debit Purchases $2,000; Credit Accounts Payable $2,000.
B. Debit Inventory $2,000; Credit Accounts Payable $2,000.
C. Debit Accounts Payable $2,000; Credit Inventory $2,000.
, D. Debit Cash $2,000; Credit Purchases $2,000.
Answer: B
For perpetual inventory systems (common in QBO), debit Inventory to increase assets and
credit the liability. Use the "Bill" form in QBO.
Question 6
You discover a $100 transposition error where $456 was entered as $546. How does this affect
the trial balance under double-entry?
A. Debit side overstated by $90.
B. Credit side understated by $100.
C. Both sides overstated by $90.
D. No net effect, as double-entry balances.
Answer: D
Errors in double-entry that affect both sides equally won't unbalance the trial balance; they
require reconciliation. In QBO, run a Trial Balance report to spot such issues.
Question 7
Recording a $300 owner withdrawal in a sole proprietorship. What is the double-entry?
A. Debit Owner's Draw $300; Credit Cash $300.
B. Debit Cash $300; Credit Owner's Equity $300.
C. Debit Owner's Equity $300; Credit Cash $300.
D. Debit Revenue $300; Credit Owner's Draw $300.
Answer: A
Withdrawals reduce owner's equity via a contra-equity account. In QBO, use "Owner's Draw" as
an equity sub-account in the "Check" or "Expense" form.
Question 8
A service business earns $1,500 in fees, half cash and half credit. Combined double-entry?
A. Debit Cash $750; Debit Accounts Receivable $750; Credit Service Revenue $1,500.
B. Debit Service Revenue $1,500; Credit Cash $750; Credit Accounts Receivable $750.
C. Debit Cash $1,500; Credit Accounts Receivable $750.
