INTUIT BOOKKEEPING UPDATED TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔Statement of Cash Flows - ✔✔A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific
period of time.
1. operating activities
2. investment activities
3. financing activities
✔✔Statement of Equity - ✔✔Financial statement showing the beginning balance,
additions to and deductions from, and the ending balance of the shareholders' equity
account, for a specified period. Also called statement of shareholders equity.
✔✔double-entry accounting - ✔✔The recording of debit and credit parts of a transaction
✔✔Deferred Expense - ✔✔An asset created when a business makes advance
payments of future expenses.
✔✔accrued expenses - ✔✔expenses incurred but not yet paid in cash or recorded
, ✔✔Deferred Revenue - ✔✔A liability created when a business collects cash from
customers in advance of completing a service or delivering a product.
✔✔Accrued Revenues - ✔✔revenues for services performed but not yet received in
cash or recorded
✔✔Accrual assumption - ✔✔Transactions are recorded using the accrual basis of
accounting, where the recognition of revenues and expenses arises when earned or
used, respectively. If this assumption is not true, a business should instead use the
cash basis of accounting
✔✔Conservatism Assumption - ✔✔When bookkeepers or accountants are uncertain
and need to determine how to report an item, conservatism guides them to choose the
option that shows less income or asset benefit. Potential losses can be recorded while
potential gains cannot
✔✔Consistency assumption - ✔✔The same method of accounting will be used from
period to period, unless it can be replaced by a more relevant method.
✔✔Economic Entity Assumption - ✔✔An assumption that every economic entity can be
separately identified and accounted for.
✔✔Going Concern Assumption - ✔✔The assumption that the company will continue in
operation for the foreseeable future.
✔✔Reliability Assumption - ✔✔Only those transactions that can be adequately proven
should be recorded.
✔✔Time Period Assumption - ✔✔Assumption that an organization's activities can be
divided into specific time periods such as months, quarters, or years.
✔✔Accrual Basis Accounting - ✔✔reporting income when it is earned and expenses
when they are incurred
✔✔Cash Basis Accounting - ✔✔Reporting income when the cash is received and
expenses when the cash is paid.
✔✔Natural Accounts - ✔✔the categories to which various costs are charged in the
normal financial accounting cycle
✔✔current assets - ✔✔cash and other assets expected to be exchanged for cash or
consumed within a year
QUESTIONS AND ANSWERS SURE A+
✔✔Statement of Cash Flows - ✔✔A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific
period of time.
1. operating activities
2. investment activities
3. financing activities
✔✔Statement of Equity - ✔✔Financial statement showing the beginning balance,
additions to and deductions from, and the ending balance of the shareholders' equity
account, for a specified period. Also called statement of shareholders equity.
✔✔double-entry accounting - ✔✔The recording of debit and credit parts of a transaction
✔✔Deferred Expense - ✔✔An asset created when a business makes advance
payments of future expenses.
✔✔accrued expenses - ✔✔expenses incurred but not yet paid in cash or recorded
, ✔✔Deferred Revenue - ✔✔A liability created when a business collects cash from
customers in advance of completing a service or delivering a product.
✔✔Accrued Revenues - ✔✔revenues for services performed but not yet received in
cash or recorded
✔✔Accrual assumption - ✔✔Transactions are recorded using the accrual basis of
accounting, where the recognition of revenues and expenses arises when earned or
used, respectively. If this assumption is not true, a business should instead use the
cash basis of accounting
✔✔Conservatism Assumption - ✔✔When bookkeepers or accountants are uncertain
and need to determine how to report an item, conservatism guides them to choose the
option that shows less income or asset benefit. Potential losses can be recorded while
potential gains cannot
✔✔Consistency assumption - ✔✔The same method of accounting will be used from
period to period, unless it can be replaced by a more relevant method.
✔✔Economic Entity Assumption - ✔✔An assumption that every economic entity can be
separately identified and accounted for.
✔✔Going Concern Assumption - ✔✔The assumption that the company will continue in
operation for the foreseeable future.
✔✔Reliability Assumption - ✔✔Only those transactions that can be adequately proven
should be recorded.
✔✔Time Period Assumption - ✔✔Assumption that an organization's activities can be
divided into specific time periods such as months, quarters, or years.
✔✔Accrual Basis Accounting - ✔✔reporting income when it is earned and expenses
when they are incurred
✔✔Cash Basis Accounting - ✔✔Reporting income when the cash is received and
expenses when the cash is paid.
✔✔Natural Accounts - ✔✔the categories to which various costs are charged in the
normal financial accounting cycle
✔✔current assets - ✔✔cash and other assets expected to be exchanged for cash or
consumed within a year
