Intuit Academy Bookkeeping Exam || 100% Errorless Answers.
Four Key Elements of Bookkeeping Ethics correct answers Honesty, Objectivity, Confidentiality
and Professionalism
What is DEALER correct answers Dividends + Expenses + Assets = Liabilities + Owner's
Equity (beginning) + Revenue
What's is the accounting Equation? correct answers Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular
period correct answers The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific point in
time correct answers The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the period
balance. correct answers The Statement of Equity
Reports the sources and uses of cash by a business correct answers The Statement of Cash Flow
Accounting Cycle correct answers 1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements
If customers pays at the time of sale you must enter it as a correct answers Sales Receipt
If customers does not pay at the time of sale you must enter it as a correct answers Invoice
Once and customer has paid an invoice it goes to correct answers Receive payment
Receive payment and sales receipt are followed by correct answers Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes correct answers Deferrals,
Accruals, Missing Transactions, and Tax Adjustments
An entry to record a current payment or expense at a
later period when the money has actually been earned or
incurred. Deferral entries remove transactions that belong to a different time period. correct
answers Deferral
An entry to record a future revenue or expense in the
current period, even if money hasn't been paid or
, received yet. correct answers Accrual
The Business is a separate entity, so the activities of a business must be kept separate from any
other financial activities of its business owners correct answers Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices. And what this
means is that businesses must be able to prove transactions through such things as receipts,
billing statements, invoices, and bank statements. correct answers Reliability Assumption
All info that is relative to the business and is important to a lender or investor has to be disclosed
in financial statements or in the notes of the statements correct answers Full Disclosure Principle
When choosing between two solutions, the one that will be least likely to overstate assets and
income should be selected. correct answers Conservatism Assumption
States that an amount can be ignored if its effect on the financial statements is small and not
misleading correct answers Materiality Principle
Once you adopt an accounting principle or method, continue to follow it consistently in future
accounting periods so that the results reported from period to period are comparable correct
answers Consistency Principle
One currency is used throughout all accounting activities. In the US the dollar is the currency
used in accounting. When this currency is used, inflation is not a consideration in recording
finances correct answers Monetary Unit Assumption
Refers to a business that is stable enough to operate and meet its obligation for the future correct
answers Going Concern Assumption
Revenue is recognized when payment is received and expenses are recognized when paid out
correct answers Cash-Basis Account Method
Revenues are reported when they are earned (revenue recognized when invoices are issued to
customers, regardless of when payment is received) and expenses are reported when they are
incurred. correct answers Accrual Method of Accounting
A combo of cash-basis and accrual methods correct answers Hybrid Accounting
Recognizes revenue when payment is received but expenses when they are incurred. Allows for
more accurate tracking of accounts payable and accounts receivable. correct answers Modified
cash-basis accounting
Things your company owns that you can easily convert to cash and expect to do so within the
next 12 months correct answers Currents Assets
Four Key Elements of Bookkeeping Ethics correct answers Honesty, Objectivity, Confidentiality
and Professionalism
What is DEALER correct answers Dividends + Expenses + Assets = Liabilities + Owner's
Equity (beginning) + Revenue
What's is the accounting Equation? correct answers Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular
period correct answers The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific point in
time correct answers The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the period
balance. correct answers The Statement of Equity
Reports the sources and uses of cash by a business correct answers The Statement of Cash Flow
Accounting Cycle correct answers 1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements
If customers pays at the time of sale you must enter it as a correct answers Sales Receipt
If customers does not pay at the time of sale you must enter it as a correct answers Invoice
Once and customer has paid an invoice it goes to correct answers Receive payment
Receive payment and sales receipt are followed by correct answers Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes correct answers Deferrals,
Accruals, Missing Transactions, and Tax Adjustments
An entry to record a current payment or expense at a
later period when the money has actually been earned or
incurred. Deferral entries remove transactions that belong to a different time period. correct
answers Deferral
An entry to record a future revenue or expense in the
current period, even if money hasn't been paid or
, received yet. correct answers Accrual
The Business is a separate entity, so the activities of a business must be kept separate from any
other financial activities of its business owners correct answers Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices. And what this
means is that businesses must be able to prove transactions through such things as receipts,
billing statements, invoices, and bank statements. correct answers Reliability Assumption
All info that is relative to the business and is important to a lender or investor has to be disclosed
in financial statements or in the notes of the statements correct answers Full Disclosure Principle
When choosing between two solutions, the one that will be least likely to overstate assets and
income should be selected. correct answers Conservatism Assumption
States that an amount can be ignored if its effect on the financial statements is small and not
misleading correct answers Materiality Principle
Once you adopt an accounting principle or method, continue to follow it consistently in future
accounting periods so that the results reported from period to period are comparable correct
answers Consistency Principle
One currency is used throughout all accounting activities. In the US the dollar is the currency
used in accounting. When this currency is used, inflation is not a consideration in recording
finances correct answers Monetary Unit Assumption
Refers to a business that is stable enough to operate and meet its obligation for the future correct
answers Going Concern Assumption
Revenue is recognized when payment is received and expenses are recognized when paid out
correct answers Cash-Basis Account Method
Revenues are reported when they are earned (revenue recognized when invoices are issued to
customers, regardless of when payment is received) and expenses are reported when they are
incurred. correct answers Accrual Method of Accounting
A combo of cash-basis and accrual methods correct answers Hybrid Accounting
Recognizes revenue when payment is received but expenses when they are incurred. Allows for
more accurate tracking of accounts payable and accounts receivable. correct answers Modified
cash-basis accounting
Things your company owns that you can easily convert to cash and expect to do so within the
next 12 months correct answers Currents Assets
