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INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE QUESTIONS WITH
DETAILED VERIFIED ANSWERS
What are the 5 Account Types? Ans: - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? Ans: Assets = Liabilities + Equity
What does DEA/LER stand for? Ans: - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? Ans: 1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
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5. close the books
What are the 4 Types of financial statements? Ans: - 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? Ans: - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? Ans: - Handle bank feeds and
reconciles bank accounts, managing accounts receivable/payable, and
record financial 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 assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity would
be as of December 31, 2020. Ans: - $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? Ans: - $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019,
her firm had assets of $800,000 and liabilities of $185,000. Assuming
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that assets decreased by $52,000 and liabilities increased by $24,000
during 2020, use the accounting equation to calculate equity at the end
of 2020. Ans: - $539,000
The accounting equation can be defined as: Ans: - Assets = Liability +
Equity
What the company owns or controls and expects to gain value from is
defined as: Ans: - An Asset
What the company owes to others is defined as: Ans: - Liabilities
The owner's stake in the company is defined as: Ans: - Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: Ans: - Double-entry
Accounting
Which of the following best defines a credit as it's used in double-entry
accounting? Ans: - A decrease in assets/expenses and an increase in
liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry
accounting? Ans: - An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal
entry, which account would you debit? Ans: - 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? Ans: - 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 your journal entry, which account do you credit? Ans: - A
ccounts payable
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE QUESTIONS WITH
DETAILED VERIFIED ANSWERS
What are the 5 Account Types? Ans: - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? Ans: Assets = Liabilities + Equity
What does DEA/LER stand for? Ans: - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? Ans: 1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
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5. close the books
What are the 4 Types of financial statements? Ans: - 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? Ans: - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? Ans: - Handle bank feeds and
reconciles bank accounts, managing accounts receivable/payable, and
record financial 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 assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity would
be as of December 31, 2020. Ans: - $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? Ans: - $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019,
her firm had assets of $800,000 and liabilities of $185,000. Assuming
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that assets decreased by $52,000 and liabilities increased by $24,000
during 2020, use the accounting equation to calculate equity at the end
of 2020. Ans: - $539,000
The accounting equation can be defined as: Ans: - Assets = Liability +
Equity
What the company owns or controls and expects to gain value from is
defined as: Ans: - An Asset
What the company owes to others is defined as: Ans: - Liabilities
The owner's stake in the company is defined as: Ans: - Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: Ans: - Double-entry
Accounting
Which of the following best defines a credit as it's used in double-entry
accounting? Ans: - A decrease in assets/expenses and an increase in
liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry
accounting? Ans: - An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal
entry, which account would you debit? Ans: - 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? Ans: - 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 your journal entry, which account do you credit? Ans: - A
ccounts payable
